Biological Assets and Agricultural Produce (6 marks) Timber Resource Inc. a forestry company, owns timber resources in northern Quebec. The company produces lumber from these resources. During 20X3, the company cut trees into logs with a fair market value of $680,000. The selling costs estimated at the time were 6% of fair value. At the end of the year, about 20% of these logs have not yet entered production. The 80% that have entered production required $199,000 of production costs to produce lumber into fixed cut lengths that are now available for sale to various customers. By the end of the year, 40% of the lumber was still on hand and ready for sale. There was no work-in-progress at the year- end. Fair-value information for assets owned at the year-end is provided below: Timber Logo Lumber Fair value at end of 20x2 $10,084,000 $124,400 $332,600 Fair value at end of 20x3 $10,594,000 $141,000 $349,200 Costs to sell are estimated to be 6% for timber, 6% for logs and 9% for lumber. Required: 1. Prepare the journal entries to record the transactions during 20X3 as well as any entries needed to adjust year-end balances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)