Apple Farm Inc. is a chicken farm in Brampton, ON. AFI reports under IFRS and has a December 31 fiscal year end. AFI also grows corn in the acres surrounding its chicken barns and sells the corn each August once the crop is harvested.

AFI has four chicken barns, each with 12,000 laying hens. Each hen lays five eggs per week, which are sold to grocery stores. Eggs sell for $0.05 each, and AFI incurs $1,150 per week in egg packing and cleaning costs. Hens are kept for two years before needing to be replaced and are purchased in January 1 every second year for $0.75 each. After the two years, the laying hens are sold at a price of $0.45 each. If AFI disposed of the laying hens after one year, they would be sold at a price of $0.55 each. The hens currently owned by AFI have been around for one year.

AFI’s corn seed is planted each April 1 at a cost of $0.20 per cornstalk. AFI planted 45 cornstalks per acre on each of its 36 acres. It costs AFI $1,000 in labour to plant the field, and $250 per month to fertilize and maintain. At the end of August, AFI harvests the corn at a total cost of $2,000, and the corn is sold for $0.50 per ear of corn. A harvest generally produces 25,000 ears of corn. After the harvest, AFI’s field is empty and left ready for the next year’s planting.

Answer following

1. Identify the biological asset(s) and agricultural produce of AFI.

2. Calculate the impact on the statement of comprehensive income of selling the annual egg production and corn harvest of AFI for the year ended December 31.