Exercise 10-22

On March 1 2020, Sheridan Winery Ltd. purchased a five-hectare commercial vineyard for $1,049,400. The total purchase price was based on appraised market values of the building, grapevines, and equipment ($580,000, $259,900, and $209,500, respectively). Sheridan Winery incurred the following cash expenditures between March 1 and June 30, the date of Sheridan Winerys first harvest from the grapevines:

Major repairs to sprayer equipment		$27,780
Grapevine fertilizer		6,630
Phase 1 construction of a new grape trellis system for the grapevines		30,690
Construction of a new custom wine cellar		61,870
Harvesting labour		35,580

The fair value of the grapevines was estimated to have increased to $295,000 by December 31, 2020, the companys fiscal year end, and any sale of vineyard assets would attract a 2% realtor commission. Sheridan Winery prepares financial statements in accordance with IFRS.

What is the carrying amount of the grapevines on the statement of financial position at December 31, 2020?

Carrying amount

$

In 2021, Sheridan Winery incurs $16,950 in costs related to Phase 2 construction of the new grape trellis system for the grapevines, and the fair value of the grapevines increases to $329,900 by December 31, 2021. What is the carrying amount of the grapevines on the statement of financial position at December 31, 2021?

Carrying amount

$

Question Attempts: 0 of 4 used

SAVE FOR LATER

SUBMIT ANSWER