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Biological Assets - Problems
Biological Assets - Problems
January 1, 2013
2-year old cattle P12,000
Newborn cattle 4,000
The company records separate the increase in fair value less cost to sell due to physical
change and change in fair value less cost to sell due to price change.
How much is the gain or loss on the initial recognition of biological assets recognizaed
during 2013?
a. P5,000 gain
b. P5,000 loss
c. P1,000 loss
d. P0
2. How much shall be taken to profit or loss as a gain arising from change in fair value due
to physical change?
a. P30,000
b. P60,000
c. P80,000
d. P110,000
3. How much shall be taken to profit or loss as a gain arising from change in fair value due
to price change?
a. P30,000
b. P60,000
c. P90,000
d. P110,000
4. What amount shall be presented on the statement of financial position on December 31,
2013 under the caption Biological Assets?
a. P320,000
b. P350,000
c. P390,000
d. P410,000
5. Assume that ten 3-year old cattle were sold realizing net proceeds of P15,000 on each
cattle. How much gross income shall be reported on the company’s statement of
comprehensive income for the year ended December 31, 2013?
a. P80,000
b. P110,000
c. P150,000
d. P260,000
6. The following information is made available by Robby Farms of its dairy livestock:
At what amount should the biological assets on the statement of financial position be
reported at December 31, 2013?
a. P1,274,000
b. P764,000
c. P694,000
d. P630,000
7. What amount shall be included in gross income of Robby Farms as a result of the
transactions on its dairy livestock?
a. P64,000
b. P220,000
c. P284,000
d. P290,000
8. Burberry Dairy Products produces milk on its farms. At January 1, 2013, Burberry has
125 cows with average age of two years and 75 heifers with average age of one year. On
July 1, 2013, Burberry purchased 80 heifers with average age of one year. The unit values
less cost to sell were:
9. A group of thirty 2-year old cattle was held at January 1, 2013. Five 2-year old cattle
were purchased on January 2, 2013 for P12,500 each and 5 calves were born on January
2, 2013. No cows or calves were disposed of during the period. Per unit fair values less
cost to sell were:
The Company records separately the increase in fair value less cost to sell due to physical
change and change in fair value less cost to sell due to price change.
How much shall be taken to profit or loss as a gain arising from change in fair value less
cost to sell due to physical change?
a. P70,000
b. P82,500
c. P90,000
d. P102,500
10. How much shall be taken to profit or loss as a gain arising from change in fair value less
cost to sell due to price change?
a. P17,500
b. P20,000
c. P25,000
d. P102,500
11. The Sergio Company has a herd of ten 2-year old animals on January 1, 2013. One
animal aged 2.5 years was purchased on July 1, 2013 for P10,800 and one animal was
born on July 1, 2013. No animals were sold or disposed of during the year. The fair value
less cost to sell per unit were:
The December 31, 2013 statement of financial position should report biological assets of
a. P144,000
b. P140,000
c. P117,800
d. P110,800
12. The gain arising from change in fair value less cost to sell reported in the 2013 profit or
loss is
a. P5,500
b. P23,700
c. P29,000
d. P29,200