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Question - Lenny's Llamas purchased 1,500 llamas on January 1, 2015. These llamas will be sheared semiannually and their wool sold to specialty clothing manufacturers. The llamas were purchased for P222,000. During 2015 the change in fair value due to growth and price changes is P14,100, the wool harvested but not yet sold is valued at net realizable value of P27,000, and the change in fair value due to harvest is (P1,750).
1. What is the value of the llamas on Lenny's Llamas statement of financial position on June 30, 2015?
a. 234,350
b. 222,000
c. 220,250
d. 193,250
2. On Lenny's Llamas income statement for the year ending December 31, 2015, what amount of unrealized gain on biological assets will be reported?
a. 14,100
b. 39,350
c. 12,350
d. 41,100
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