Reference no: EM133112490
Questions -
Q1. On December 2, 2020, Moon Corp. entered into a non-cancelable purchase contract to buy 10,000 ounces of diamonds on February 12, 2021 at a price of P310 per ounce. At year-end of 2020, the market value of diamonds fell down to P270 per ounce. On February 12, 2021, the market price of diamonds skyrocketed to P320 per ounce. What is the amount of gain on recovery of Moon Corp. recognize on February 12, 2021?
a. P400,000
b. No gain to be recognized
c. P100,000
d. P500,000
Q2. Life Goes On, Inc. owned the following assets in their forest plantation farm used for agricultural activity:
Freestanding trees- 5,000,000
Small nipa huts- P2,000,000
Land- P600,000
Bearer animals- P2,000,000
Bearer plant (10% of value from agricultural produce; 90% for the tree)- P5,000,000
Caged animals as entertainment for incoming visitors- P9,000,000
Which of the following assets above shall be covered by PAS 41 - Agriculture?
a. P21,000,000
b. P12,000,000
c. P16,500,000
d. P7,500,000
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