Lucy's Llamas Purchased 1,000 Llamas on January 1, 2011

question 98

Multiple Choice

Lucy's 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's Llamas statement of financial position on June 30, 2011?

• A)$156,250
• B)$148,000
• C)$146,850
• D)$128,850

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Definitions:

Fundamental Attribution Error

The tendency to overestimate the role of personal characteristics and underestimate the situational factors when explaining others' behaviors.

Pluralistic Ignorance

A psychological phenomenon in which individuals mistakenly believe that their own attitudes and beliefs are different from those of the majority, often leading to conformity.

Social Psychologists

Experts who study how individuals' thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

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