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cost of disposal? a.Commission to broker and dealer b.Levy by regulatory agency c. Transfer tax id. Transport cost Answer. d Transport cost Problem 19-2 Multiple choice 1.Generally speaking, biological assets relating to agricultural activity shall be measure using a.Historical cost b.Historical less depreciation less impairment c.A fair value approach Net realizable value ‘Answer cA fair value approach 2.An entity had a plantation forest that is likely to be harvested and sold in 30 years. The income shall be accounted for in which of the following? a.No income shall be reported annually until first harvest and sale in 30 years b.lncome shall be measured annually and reported using a fair value approach that recognizes and measures biological growth c.The eventual sale proceeds shall be estimated and matched to the profit and loss account over the 30-year period. d.The plantation forest shall be measured every 5 years and the increase in value shall be shown in the statement of comprehensive income 3.Which of the fallowing statements is true regarding agricultural produce? a.ln all cases, an entity shall measure agricultural produce at fair value less cost of disposal at the point harvest. b.The prevailing view is that the fair value of agricultural produce at the point of harvest can always be measured reliably c.The fair value measurement of agricultural Produce stops at the time of harvest LAI of these statements are true regarding agricultural produce. feganding agricultural produce, 4.What is the measurement basis for valuing biological assets and agricultural produce? a.Historical cost b. Current cost c.Present value d. Fair value Answer. d, Fair value 5.Where the fair value of the biological asset cannot be determined reliably, the biological asset shall measured at a.Cost b.Cost less accumulated depreciation c.Cost less accumulated depreciation and accumulated impairment loss d.Net realizable value ‘6.Which of the following is unlikely to be in fair value measurement? a.Quoted price of an identical asset in an active market b.Quoted price of a similar asset in an active market c.The present value of the expected net cash flows from the asset d.Extemal independent valuation 7.4 gain or loss arising on the initial recognition of a biological asset and from a change in the fair value less cost disposal of a biological asset shall be included in a.Profit or loss for the period b.Other comprehensive income c.4 separate revaluation reserve d.An appropriation reserve Answer: a. Profit or loss for the period B.Where there is a long aging or mutation process after harvest, the accounting for ‘such products shall be dealt with by