Dub Dairy Produces Milk to Sell to Local and National

question 34

Multiple Choice

Dub Dairy produces milk to sell to local and national ice cream producers.Dub Dairy began operations on January 1, 2011 by purchasing 840 milk cows for $1,176,000.The company controller had the following information available at year end relating to the cows: On Dub Dairy's income statement for the year ending December 31, 2011, what amount of unrealized gain on biological assets will be reported?

• A)$ -0-
• B)$365,000
• C)$323,000
• D)$54,600

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Definitions:

Strain Studies

Research efforts that focus on understanding the biological and psychological effects of stress on organisms.

Inbreeding

The breeding of closely related individuals, which can increase the risk of inheriting genetic defects.

Breeding Animals

Breeding animals involves the selective mating of animals to produce specific, desired traits in their offspring.

Adopting Children

The act or process of becoming the legal parent of a child that is not one's biological offspring, providing that child with the rights and privileges of one's own child.