Reference no: EM132785007
A herd of 100, 2-year old animals was held at January 1, 2024. Ten animals aged 2.5 years were purchased in July 1, 2024 for P5,400, and ten animals were born on July 1, 2024. No animals were sold or disposed of during the period.
Per unit fair values less estimated point-of-sale costs were as follows:
2.0-year old animal at January 1, 2024 P5,000
Newborn baby animal at July 1, 2024 3,500
2.5-year old animal at July 1, 2024 5,400
Newborn animal at December 31, 2024 3,600
0.5-year old animal at December 31, 2024 4,000
2.0-year old animal at December 31, 2024 5,250
2.5-year old animal at December 31, 2024 5,550
3.0-year old animal at December 31, 2024 6,000
problem 1: How much of the increase in the fair value of the biological assets due to price change?
Option 1: none
Option 2: P25,000
Option 3: P27,500
Option 4: P26,500
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