ACCA · Question 13 · Agriculture
Section A
DairyFarm Co owns a herd of 100 cattle. At 1 January 20X5, the herd's fair value was $150,000, with estimated point-of-sale costs of $5,000. During the year, no cattle were bought or sold. At 31 December 20X5, the fair value of the herd increased to $180,000, with estimated point-of-sale costs of $6,000. What amount should be recognized in profit or loss for the year ended 31 December 20X5 regarding the cattle?
Answer options:
A gain of $30,000
A gain of $29,000
A gain of $24,000
Nil, gains are only recognized upon sale
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