Nerang Orange Farms Ltd has orange trees that on 30 June 2012 had a fair value of $1 600 000.On 30 April 2013 oranges with an estimated market value of $300 000 were picked.The costs of picking,sorting and packing paid in cash amount to $150 000.The oranges were sold on the same day for $310 000.An independent valuation on 30 June 2013 reports that the estimated fair value of the orange trees is $1 500 000. What is the net profit of Nerang Orange Farms Ltd for the year ending 30 June 2013 to conform with the provisions of AASB 141 Agriculture?

Question

Quizplus · Accepted Answer

The net profit for the year is calculated by considering the revenue from the sale of oranges ($310,000), subtracting the costs associated with picking, sorting, and packing ($150,000), and accounting for the decrease in the fair value of the orange trees from $1,600,000 to $1,500,000 ($100,000). Therefore, the net profit is $310,000 (revenue) - $150,000 (costs) - $100,000 (decrease in fair value) = $60,000.

Nerang Orange Farms Ltd Has Orange Trees That on 30