Blue Spruce Limited is a farm that raises sheep for their wool. During the year, the following occurred: 1. A lamb was born (fair value less costs to sell: $490 ). It will only be held to produce wool (the farm is prepared to support this). Assume no costs were incurred at birth. 2. General farm expenses incurred were $220. Assume there are no direct expenses. 3. The value of lambs and other sheep increased by $640. 4. Wool valued at $100 was produced from the sheep (market price readily determinable, no costs of disposal, and wool ready for sale). The company uses the net realizable value model for agricultural products/inventory (i.e., if it follows ASPE). 5. Wool was sold for $100. (a1) Are the sheep biological assets? Is the wool? The sheep biological assets. The wool a biological asset