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.

AFIs 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, AFIs field is empty

and left ready for the next years planting.

Answer following

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

2.Describe how each biological asset and item of agricultural produce should be

measured at December 31 of the first year. For any biological asset and item of

agricultural produce that should be recorded on the statement of financial position at

December 31 of the first year, calculate the value.

3. 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.