What is the fair value of biological assets at year-end

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Reference no: EM133006249

Dairy Company provided the following information for current year:

Cash 500,050

Trade and other receivables 1,500,000

Inventories 100,000

Dairy livestock - immature 50,000

Dairy livestock - mature 400,090

Property, plant and equipment, net 1, 400,090

Trade and other payables 520,000

Note payable - long-term 1.500,000

Share capital 1.000,000

Retained earnings - beginning 800,090

Fair value of milk produced 600,000

Gain from change in fair value 50,000

Inventories used 140,000

Staff costs 120,000

Depreciation expense 15,000

Other operating expenses 190,000

Income tax expense 55,000

Problem 1. What amount should be reported as net income for the current year?

Problem 2. What is the fair value of biological assets at year-end?

Reference no: EM133006249

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