un.1 A tree farm harvests a variety of trees that are sold to garden centres. In 20X5, the company was created and they acquired 1,670immature blue spruce trees and 334 mature blue spruce trees. Each spruce is grown to be 8 feet, at which point they are sold to agarden centre. The cost to sell each tree, no matter the size, is estimated at $25.The company uses a periodic system to account for the sale of trees. The trees sold each year is included below along with thefollowing information.Fair value-immature blue spruceFair value-mature blue spruceMature trees soldImmature trees that became mature during the period1 January20X531 December 20X5 31 December 20X6$335$685$350$410$685$685185165160305The fair values of trees are determined based on their relative size. While there is a market to sell smaller trees, the company's policyis to only sell trees grown to maturity.Required:Prepare the journal entries for 1 January 20X5, 31 December 20X5, and 31 December 20X6 in accordance with IFRS. (If no entry isrequired for a transaction/event, select "No journal entry required" in the first account field.)

Dr Inventory (Mature Blue Spruce) $116,900Cr Gain on Fair Value Change $116,900 Dr Loss on Fair…

Answered: A tree farm harvests a variety of trees…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 39P

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Please from requirement 1 to 4b.
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