Alton Downs Ltd Has an Orchard of Citrus Trees with an Estimated

question 9

Multiple Choice

Alton Downs Ltd has an orchard of citrus trees with an estimated net realisable value at 1 January 20X1 of $1 600 000.During the year ended 31 December 20X1 fruit with an estimated fair value of $300 000 was picked.The fruit was still on hand at the end of the year.Estimated sales commission on this fruit was $\$ 25000$ .Costs of picking,sorting,packing and storage totalled $125 000.The fruit was sold in 20X2 (after the 20X1 financial statements were prepared) for $430 000.On 31 December 20X1 the orange orchard had an estimated net realisable value of $1 550 000.The fruit on hand at 31 December 20X2 should be valued at:

• A) $300 000
• B) $275 000
• C) $125 000
• D) $475 000

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Definitions:

Popliteus

A small muscle located at the back of the knee joint, crucial for initiating knee flexion.

Tibialis Posterior

A muscle in the leg that supports the arch of the foot and aids in walking by controlling plantar flexion and inversion of the foot.

Fibularis Brevis

A muscle of the lower leg that contributes to the eversion and plantarflexion of the foot.

Extensor Hallucis Longus

A leg muscle that extends the big toe and aids in foot dorsiflexion and inversion.