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On Jan. 1, 2020, Hold On Company had a herd of 100 five year old animals. Ten animals aged five and a half years was purchased on July 1 for P108, and ten animals were born on July 1. No animals were sold or disposed of during the year.
Fair value less cost of disposal per unit:
5 year old animal on Jan. 1 1005.5 year old animal on July 1 108New born animal on July 1 705 year old animal on Dec. 31 1055.5 year old animal on Dec. 31 111New born animal on Dec. 31 726 year old animal on Dec. 31 1200.5 year old animal on Dec. 31 80 REQUIRED:
Problem a. Fair Value of biological asset on Dec. 31 2020? =
Problem b. Gain from change in Fair value of biological assets for 2020?
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