PART I Problem The entity, Stafh Company, has a herd of 10 2-year old animals on January 1, 2020. One animal which is aged 2.5 Years was purchased on July 1, 2020 for P103 and one animal was born on July 1, 2020. No animals were sold or disposed of during the year. The fair value less cost of disposal per unit is as follows: u m m _ m n 1. What is the fair value of the biological assets on December 31 ,2020 2. What is the gain from change in fair value of biological assets that should be recognized in 2020 3. What is the gain from change in fair value due to price change A. What is the gain from change in fair value due to physical change Problem I Columbia Company is a producer of coffee. The entity is considering the valuation of its harvested coffee beans. Industry practice is to value the coffee beans at market value and use as reference a local publication "Accounting for Successful Farms". On December 31, 2020, the entity harvested coffee beans costing [3,000,000 and with fair value less cost of disposal of 3,500,000 at the point harvest. Because of the long aging and maturation process after harvest, the harvested coffee beans were still on hand on December 31, 2021. On such a date, the fair value less cost of disposal is 3,900,000 and the net realizable value is 113,200,000, What is the measurement of the coffee beans inventory on December 31, 2021? Problem 11 Joana Company provided the following data: Value of biological asset at acquisition cost on December 31, 2020 600,000 Fair valuation surplus on initial recognition at fair value on December 31, 2020 700,000 Change in fair value to December 31, 2021 due to growth and price fluctuation 100,000 Decrease in fair value due to harvest 90,000 1. What is the carrying amount of the biological asset on December 31, 2021? 2. What is the gain from change in the fair value of biological assets that should be reported in the 2021 income statement