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The company controller had the following information available at year 



1.	Braum Dairy produces milk to sell to local and national ice cream producers. Braum Dairy began operations on January 1, 2011 by purchasing 650 milk cows for $780,000. The company controller had the following information available at year end relating to the cows:
		Milking cows
		Carrying value, January1, 2011				   $780,000
		Change in fair value due to growth and price changes	     242,000
		Decrease in fair value due to harvest				      (28,000)
		Milk harvested during 2011 but not yet sold			      $36,200

		On Braum Dairy- income statement for the year ending December 31, 2011, what amount of unrealized gain on biological assets will be reported?
a.	$ -0-
b.	$242,000
c.	$214,000
d.	$36,200

	2.	Braum Dairy produces milk to sell to local and national ice cream producers. Braum Dairy began operations on January 1, 2011 by purchasing 650 milk cows for $780,000. The company controller had the following information available at year end relating to the cows:
		Milking cows
		Carrying value, January1, 2011				   $780,000
		Change in fair value due to growth and price changes	     242,000
		Decrease in fair value due to harvest				      (28,000)
		Milk harvested during 2011 but not yet sold			      $36,200

		On Braum Dairy- income statement for the year ending December 31, 2011, what amount of unrealized gain on harvest milk will be reported?
a.	No gain is reported until the milk is sold.
b.	$8,200
c.	$36,200
d.	$205,800.
 
3.	Lucy- Llamas purchased 1,000 llamas on January 1, 2011. These llamas will be sheared semiannually and their wool sold to specialty clothing manufacturers. The llamas were purchased for $148,000. During 2011 the change in fair value due to growth and price changes is $9,400, the wool harvested but not yet sold is valued at net realizable value of $18,000, and the change in fair value due to harvest is ($1,150). What is the value of the llamas on Lucy- Llamas statement of financial position on June 30, 2011?
a.	$156,250
b.	$148,000
c.	$146,850
d.	$128,850

	4.	Lucy- Llamas purchased 1,000 llamas on January 1, 2011. These llamas will be sheared semiannually and their wool sold to specialty clothing manufacturers. The llamas were purchased for $148,000. During 2011 the change in fair value due to growth and price changes is $9,400, the wool harvested but not yet sold is valued at net realizable value of $18,000, and the change in fair value due to harvest is ($1,150). On Lucy- Llamas income statement for the year ending December 31, 2011, what amount of unrealized gain on biological assets will be reported?
a.	$26,250
b.	$27,400
c.	$9,400
d.	$8,250

5.	Lenny- Llamas purchased 1,500 llamas on January 1, 2011. These llamas will be sheared semiannually and their wool sold to specialty clothing manufacturers. The llamas were purchased for $222,000. During 2011 the change in fair value due to growth and price changes is $14,100, the wool harvested but not yet sold is valued at net realizable value of $27,000, and the change in fair value due to harvest is ($1,750). What is the value of the llamas on Lenny- Llamas statement of financial position on June 30, 2011?
a.	$234,350
b.	$222,000
c.	$220,250
d.	$193,250



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