Chapter 1 Problem 7-40
Requirement 1
1. To record the purchase of one animal aged 2.5 years on July 1.
Biological assets 108
Cash 108
2. To record the birth of one animal on July 1 with fair value of P70.
Biological assets 70
Cash 70
3. To record the change in the fair value:
Biological assets 222
Cash 222
Fair value of 10 animals on January 1 (10 x P100) 1,000
Newborn animal on July 1 at fair value 70
Acquisition cost of one animal on July 1 108
Total book value of biological assets – December 31 1,178
Fair value of 3-year old animals on December 31 (11 x P120) 1,320
Fair value of 0.5-year old animal on December 31, the newborn (1 x P80) 80
Total fair value – December 31, 2008 1,400
Book value of biological assets – December 31 1,178
Increase in fair value 222
Requirement 2
Statement of financial position :
Biological assets 1,400
Income statement:
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