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Old McDonald Farms owned the following biological asset in 2020:
Carrying amount, January 1, 2020 800,000
Purchases 230,000
Gain arising from changes in fair value less costs to sell attributable to physical changes 60,000
Gain arising from changes in fair value less costs to sell attributable to price changes 60,000
Sales 110,000
Problem 1: The carrying amount of the biological assets on December 31, 2020 is?
a. 980,000
b. 1,030,000
c. 1,100,000
d. 1,040,000
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