Question 21 (1 point) Laffy Farms Corp. (Laffy), a publicly accountable entity, is growing half an acre of cannabis in its east field. Laffy incurred costs of planting in May 2020, including seedlings and labour, of $28,000. At the time of planting, the cannabis seedlings had a fair value of $18,000. The cannabis are expected to be harvested and sell for $90,000 in August 2020 and Laffy expects to incur additional costs of $12,000 prior to harvest. There are no costs to sell. Assuming that cannabis seedlings are a biological asset, how should the seedlings be measured at initial recognition? a) Capitalized for $28,000. b) All costs related to the planting should be expensed. O c) Capitalized for $50,000. d) Capitalized for $18,000. Question 22 (1 point) A publicly traded company is harvesting apples to be sold to grocery stores throughout Canada. How should the apples be initially recognized after they have been picked? a) At the cost of the planting and picking of the apples. b) At the cost of the planting and picking of the apples less costs to sell the apples. Oc) At fair value less the selling costs. d) At fair value