A business owns (purchased) cows. How should the corporation record the cows, ar

Question

A business owns (purchased) cows. How should the corporation record the cows, are they assets to the corporation ? if so, what type of assets to be classified as ? (i.e. inventory, supplies, fixed asset, investment asset, or other assets?)

Please recall definition of inventory you had learned in your accounting 1A course you had and now we are in accounting 1B course, please compare the inventory asset to this ch.10, operating fixed asset in terms of it's purposes, nature, and management intention of "owning these assets" for their respective businesses (4 different type of businesses described below).

1. the business is a cattle farm/dairy farm, producing meats, milk, and other dairy products.

2. the business is biotech science research firm experimenting genes and stem cells.

3. the business is an investment and trading firm specializing in live stocks in an open market.

4. the business is an entertainment firm in Spain, Toro Bravo (Spain Bull fighting festival)

Please discuss what type of assets for each of the above types of business and explain why?
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Explanation / Answer

1)OPERATING FIXED ASSET AS COWS DO THE MAIN PRODUCE

2)INVESTMENT ASSET AS IT IS TESTING OF COWS

3)INVESTMENT ASSET AS USED FOR INVESTING PURPOSE

4)OTHER ASSET

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