solve the following requirements based on the date shown in the photo. Required:...
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solve the following requirements based on the date shown in the photo.
Required:
1. Using cash basis, compute the reportable income of DEF Company in 2021.
2. Using accrual basis, compute the reportable income of DEF Company in 2021.
Problem 3. ACCOUNTING FOR FARMING BUSINESS DEF Company is engaged in breeding calves to become milking cows. It then sells mature cows to interested buyers, particularly those engaged in dairy farming. The company normally waits over two years for calves to become milking cows. For the year 2021, it has the following data: Salesof200milkingcows(born2yearsago)CosttosellmilkingcowsCostpaidtobirth300calves(June2021)CostoffeedsandvitaminsfornewlyborncalvesCostincurredforthe200milkingcowssold:202020218,500,000.0064,000.00345,600.00560,000.002,500,000.001,600,000.003,475,000.00 Required: 1. Using cash basis, compute the reportable income of DEF Company in 2021. 2. Using accrual basis, compute the reportable income of DEF Company in 2021
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