Reference no: EM132903324

As well as the wool from its own sheep, at December 31,2021, Boy Macho Farming Co. also held wool that it had purchased from three other farms at a cost of 30,000 bucks. The fair value less costs to sell of this wool was determined to be 32,000 bucks at December 31,2021. This wool was subsequently sold 29,000 bucks (after deducting costs to sell) on march 2,2022.

Problem 1: Is the wool purchased from the third party covered under PAS 41?

Problem 2: At what value is the purchased wool carried on the balance sheet?