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Question - On January 1, 2020, Yennefer of Vengerberg acquired a mountain range for P1,000,000 and for a separate price Yennefer also paid for the 100 timber trees growing on the mountain range for P50,000 each, their current fair value less cost to sell. By December 31, 2020 the trees have increased to a fair value of P65,000 each and if all the 100 trees were felled and disposed, Yennefer would incur a cost to sell of P150,000. For the entire year, Yennefer also incurred costs related to agricultural activities amounting to P100,000 inclusive of salaries of caretaker, fertilizers, insecticides and maintenance costs.
Required -
1. Provide the journal entries to record the transactions in 2020.
2. What amount will be presented on Yennefer's December 31, 2020 statement of financial position as biological assets?
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