Reference no: EM133198139
In 20X8, the first year of its operation, Fruit Farm Ltd had an apple plantation with a fair value of $131324.
The plantation is intended to be used for more than 1 period, solely for the purpose of growing apples. The company has no intention to sell the plantation beyond incidental scrap sales.
Between May and October 20X8, a total of $738 was spent on fertiliser treatments.
During December 20X8, 120 kg of apples were harvested at a cost of $8937. The net market value of the apple harvested was $35095 and the estimated selling costs were $5018.
By 31 December 20X8, 80% of the harvested apples had been sold for $37134 and actual selling costs of $3195 has been incurred.
On 31 December 20X8, the fair value of Fruit Farm Ltd's plantation was $231635.
Fruit Farm Ltd has a December 31 financial year end, and it adopts fair value as the accounting policy for their property, plant and equipment assets.
Calculate the net profit/(loss) for the year's income statement.
The correct answer is: 30279. I would like to know the calculation details