4/30/23, 2:54 PM SOL. MAN. Chapter 20 Agriculture IA PART 1B 4/30/23, 2:54 PM SOL. MAN.

Chapter 20 Agriculture IA PART 1B

13. C
Chapter 20 14. D
15. B
Agriculture 16. A
17. B

18. Solutions:
PROBLEM 1: TRUE OR FALSE Requirement (a):
1. FALSE 6. FALSE FVLCS - Dec. 31, 20x1:
2. FALSE 7. FALSE – ‘activity’ not productivity’ I. One animal from beginning of the period now 2 yrs. old:
3. TRUE 8. FALSE (₱2,400 x 1) 2,400
4. TRUE 9. FALSE II. One animal purchased on Mar. 31 now 3 yrs. old:
5. TRUE 10. FALSE (₱3,500 x 1) 3,500
III. One animal born on Oct. 1, 20x1 now 0.25 year old
PROBLEM 2: FOR CLASSROOM DISCUSSION (₱800 x 1) 800
1. C FVLCS - Dec. 31, 20x1 6,700
2. C
3. D
Carrying amount excluding newborn:
4. C
5. D Carrying amount on January 1, 20x1 @ FVLCS 1,000
6. C FVLCS of animal purchased on Mar. 1, 20x1 2,000
7. C Solution: Carrying amt. on Dec. 31, 20x1 excluding newborn 3,000
Maize plants 40,000
Trees in a timber plantation 200,000 Total gain from changes in FVLCS during 20x1 3,700
Cotton plants 20,000
Total biological assets 260,000 Requirement (b): Change in FVLCS attributable to price change
(FVLCS, end. Age as of beg.) - (FVLCS, beg. Age as of beg.) x Qty.
8. A - grape vines
I. One animal from beginning of the period:
9. C Solution: (₱1,200 - ₱1,000) x 1 ₱200
Wool 6,000
Picked fruit 20,000 II. One animal purchased during the period
Harvested latex 30,000 1,000
(₱3,000 - ₱2,000) x 1
Total agricultural produce 56,000
III. One animal born during the period
10. A Solution:
Processed fruit 20,000 (₱600 - ₱500) x 1 100
Logs 60,000
Roasted peanuts 20,000 Change in FVLCS attributable to PRICE CHANGE ₱1,300
Total inventory 100,000
Requirement (c): Change in FVLCS attributable to physical change
11. D
(FVLCS, end. Age as of end.) - (FVLCS, end. Age as of beg.) x Qty.
12. C + FVLCS of newborn at date of birth

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4/30/23, 2:54 PM SOL. MAN. Chapter 20 Agriculture IA PART 1B 4/30/23, 2:54 PM SOL. MAN. Chapter 20 Agriculture IA PART 1B

PROBLEM 3: EXERCISES
A.
I. One animal from beginning of the period: 1. Solution:
(₱2,400 - ₱1,200) x 1 ₱1,200
Herd of cattle grown to be butchered for their meat 1,200,000
Rice plants grown to produce rice for sale 600,000
II. One animal purchased during the period
(₱3,500 - ₱3,000) x 1 500 Total 1,800,000

III. One animal born during the period

2. Solution:
(₱800 - ₱600) x 1 200
BA AP PPE Invty.
B.
Coffee plants 100,000
FVLCS of newborn at date of birth 500
Harvested coffee beans 40,000
Harvested mangoes 200,000
Change in FVLCS attributable to physical change ₱2,400 Timber trees 600,000
Mango trees 800,000
Felled trees 300,000
Wooden furniture 700,000
Totals 600,000 540,000 900,000 700,000

3. Solution:

BA AP PPE Invty.
Maize plants 100,000
Rubber trees 40,000
Rubber shoes 200,000
Harvested latex 600,000
Palm oil 800,000
Oil palms 300,000
Corn oil 700,000
Vegetable oil 200,000
Baby oil 400,000
Totals 100,000 600,000 340,000 2,300,000

4. Solution:
Biological assets 200,000
Gain on change in fair value less costs to sell 200,000

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4/30/23, 2:54 PM SOL. MAN. Chapter 20 Agriculture IA PART 1B 4/30/23, 2:54 PM SOL. MAN. Chapter 20 Agriculture IA PART 1B

PROBLEM 4: CLASSROOM ACTIVITY

Requirement (a): PROBLEM 6: MULTIPLE CHOICE: COMPUTATIONAL

a. Biological assets, except bearer plants. 1. B
b. Agricultural produce at the point of harvest; and Solution:
c. Unconditional government grants related to a biological asset Sheep 500,000
Wheat plants 60,000
measured at its fair value less cost to sell
Trees in a timber plantation 95,000
Maize plants 40,000
Requirement (b): Dairy cattle 1,000,000
Biological asset – living animal or living plant, except bearer plant Pigs 200,000
Bean plants 20,000
Agricultural produce – harvested product from biological asset Cotton plants 10,000
Peanut plants 5,000
PPE - Bearer plant, expected to bear produce over more than one Sugarcane 25,000
period Tobacco plants 45,000
Total biological assets - PAS 41 2,000,000
Inventory – agricultural produce that is subjected to further processing
2. A
Solution:
Requirement (c): Tea bushes 800,000
Initial measurement – FVLCS Grape vines 2,000,000
Subsequent measurement – FVLCS Fruit trees 600,000
Oil palms 300,000
Changes in FVLCS – Profit or loss Rubber trees 300,000
Total PPE - PAS 16 4,000,000
Exception: FVLCS of biological asset cannot be determined reliably at
initial recognition.
- Initial measurement – Cost 3. A
- Subsequent measurement – Cost less accumulated depreciation, Solution:
Wool 6,000
less accumulated impairment losses
Felled trees 8,000
Milk 9,000
Carcass 7,000
Requirement (d): Harvested cotton 13,000
At the point of harvest – FVLCS Harvested peanuts 140,000
After harvest – Lower of cost and NRV under PAS 2 Harvested cane 22,000
Picked leaves 3,000
Picked grapes 2,000
PROBLEM 5: THEORY Picked fruit 10,000
6. D Harvested latex 10,000
1. C
Total agricultural produce 230,000
2. B 7. C
3. A 8. B
4. C
4. B 9. D Solution:
5. C 10. B Roasted peanuts 20,000
Yarn 22,000
Carpet 33,000
Logs 45,000

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4/30/23, 2:54 PM SOL. MAN. Chapter 20 Agriculture IA PART 1B 4/30/23, 2:54 PM SOL. MAN. Chapter 20 Agriculture IA PART 1B

SOL. MAN. Chapter 2 CASH & CASH

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Equivalents IA PART 1A Lumber 62,000
Cheese 75,000
Intermediate Accounting 1 100% (5) Sausages
Cured hams
88,000
92,000
Thread 3,000
Clothing 150,000
Sugar 67,000
SOL. MAN. Chapter 18 GOVT Grants IA PART Cured tobacco 320,000
6 Tea 43,000
1B Wine
Processed fruit
500,000
20,000
Palm oil 50,000
Intermediate Accounting 1 100% (3) Rubber products 10,000
Total inventory 1,600,000

5. A Solution:
Unit2 Topic 2 Assessment FVLCS, 12/31/2007: (230 x 6) = 1,380
Less: Carrying Amt. [(200 x 5) + 212] (1,212)
4 Unrealized gain 168

Intermediate Accounting 1 100% (3) 6. C

Solution:
FVLCS - Dec. 31, 20x1:
I. Three animal from beginning of the period now 2 yrs. old:
Iwrbs Q1 Mod7 Abrahamic Religions for your (₱2,400 x 3) 7,200
29
reference II. Two animals purchased on Mar. 31 now 3 yrs. old:
7,000
(₱3,500 x 2)
III. Six animals born on Oct. 1, 20x1 now 0.25 year old
Intermediate Accounting 100% (1) (₱800 x 6) 4,800
FVLCS - Dec. 31, 20x1 19,000

Carrying amount excluding newborn:

Carrying amount on January 1, 20x1 @ FVLCS 3,000
FVLCS of animal purchased on Mar. 1, 20x1 4,000
Carrying amt. on Dec. 31, 20x1 excluding newborn 7,000

Total gain from changes in FVLCS during 20x1 12,000

7. D
Solution:
(FVLCS, end. Age as of beg.) - (FVLCS, beg. Age as of beg.) x Qty.

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4/30/23, 2:54 PM SOL. MAN. Chapter 20 Agriculture IA PART 1B

I. Three animals from beginning of the period:

(₱1,200 - ₱1,000) x 3 ₱600

II. Two animals purchased during the period

(₱3,000 - ₱2,000) x 2 2,000

III. Six animals born during the period

(₱600 - ₱500) x 6 600

Change in FVLCS attributable to PRICE CHANGE ₱3,200

8. A
Solution:
(FVLCS, end. Age as of end.) - (FVLCS, end. Age as of beg.) x Qty.
+ FVLCS of newborn at date of birth

I. Three animals from beginning of the period:

(₱2,400 - ₱1,200) x 3 ₱3,600

II. Two animals purchased during the period

(₱3,500 - ₱3,000) x 2 1,000

III. Six animal born during the period

(₱800 - ₱600) x 6 1,200

FVLCS of newborn at date of birth (500 x 6) 3,000

Change in FVLCS attributable to physical change ₱8,800

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