Reference no: EM133001756
Question - Lincoln Orchard Ltd grows apples, which are sold to the supermarkets. At 1 April 2020, Lincoln Orchard Ltd's apple trees had a fair value of $600,000. On 31 January 2021, the apples harvested had a fair value of $150,000. The selling cost were estimated at $5,000.
80% of the apples were sold for $140,000 on credit on 1 March 2020. Selling costs of $4,000 were paid by cash on the same day. Fertiliser and harvest costs were $10,000 for the year, all paid by cash. On 31 March 2021, the fair value of the apple trees was $650,000. The business uses the revaluation model to account for the bearer plants. The balance day for Lincoln Orchard Ltd is 31 March 2021.
The fertiliser and harvest costs.
The harvesting of the agriculture produce from the biological assets.
The sale of the agricultural produce and associated selling cost.
The change in the fair value of the biological assets during the year.
How much is Lincoln Orchard Ltd's net profit for the year ended 31 March 2021? Please show your workings.