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Question - BTS Farm reported the following biological assets and agriculture produce for the year ended December 31, 2020:
ASSETS FAIR VALUE
Cotton plants - P820,000
Dairy cattle - 235,000
Diseased cattle - 75,000
Harvested cotton - 175,000
Harvested cane - 120,000
Milk on dairy cattle - 72,500
Sheep - 325,000
Sugarcane - 564,750
Wool from sheep - 25,000
Required -
1. What amount should the Farm report in its 2020 statement of financial position as biological asset?
2. What amount should the Farm report in its 2020 statement of financial position as inventory related to the above biological assets?
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