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CHAPTER 23: Biological Assets: Problem 1

The document provides information about biological assets from three different companies - Nayeon, Dahyun, and Jihyo. It lists the various biological assets each company has and provides financial information related to the value and changes in those assets over time. It then asks multiple choice questions about calculating the total value of biological assets for each company.

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Mark Ilano
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147 views

CHAPTER 23: Biological Assets: Problem 1

The document provides information about biological assets from three different companies - Nayeon, Dahyun, and Jihyo. It lists the various biological assets each company has and provides financial information related to the value and changes in those assets over time. It then asks multiple choice questions about calculating the total value of biological assets for each company.

Uploaded by

Mark Ilano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CHAPTER 23: Biological Assets

Problem 1
Nayeon Company provided the following assets in a forest plantation and farm:
Freestanding trees 5,000,000
Land under trees 600,000
Roads in forest 300,000
Animals related to recreational activities 1,000,000
Bearer plants 1,500,000
Bearer animals 2,000,000
Agricultural produce growing on bearer plants 800,000
Agricultural produce harvested 1,200,000
Plants with dual use 1,400,000

What total amount of biological assets should be reported?


a. 7,800,000
b. 7,200,000
c. 8,400,000
d. 9,200,000

Problem 2
Dahyun Company provided the following data:
Value of biological assets at acquisition cost on Dec 31 2017 600,000
Fair valuation surplus on initial recognition at fair value on Dec 31, 2017 700,000
Change in fair value to Dec 31, 2018 due to growth and price fluctuations 100,000
Decrease in fair value due to harvest in 2018 90,000

What is the carrying amount of biological assets on December 31, 2018?


a. 1,400,000
b. 1,310,000
c. 1,300,000
d. 1,490,000
Problem 3
Jihyo Company is engaged in raising dairy livestock. The entity provides the following
information during the current year:
Carrying amount on January 1 5,000,000
Increase due to purchase 2,000,000
Gain arising from change in fair value less cost of disposal attributable
to price change 400,000
Gain arising from change in fair value less cost of disposal attributable
to physical change 600,000
Decrease due to sales 850,000
Decrease due to harvest 200,000

What is the carrying amount of the biological asset on December 31?


a. 6,950,000
b. 6,000,000
c. 8,000,000
d. 7,150,000

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