Reference no: EM133075977
Question - KRS Company has a herd of 10 2-year old biological assets on January 1, 2020. On June 30, 2020, five biological assets aged 2.5 years were acquired. Also, on this date, one biological asset was born. The fair value of the biological assets, less cost to sell, is as follows (per unit):
A 2-year old biological asset on January 1, 2020 P15,000
A 2.5-year old biological asset on June 30, 2020 18,000
A newly born biological asset on June 30, 2020 6,000
A 2-year old biological asset on December 31, 2020 16,500
A 2.5-year old biological asset on December 31, 2020 18,750
A newly born biological asset on December 31, 2020 7,500
A 3-year old biological asset on December 31, 2020 21,000
A 0.5-year-old biological asset on December 31, 2020 8,000
Required -
1. Compute the change in fair value due to price change.
A. 15,000
B. 16,500
C. 18,750
D. 20,250
2. Compute the change in fair value due to physical change.
A. 45,000
B. 45,500
C. 56,250
D. 77,000
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