Question 7 - Biological assets In 2009, Jones Orchard Limited established and commenced operation of an apple orchard in Napier. The trees were planted in 2009 and began producing saleable apples in 2014. Eighty per cent of the apples are sold immediately after they are picked for $96,000. Selling costs are assumed to be immaterial. The remaining 20 per cent of the picked apples are recognised as inventories at the end of the reporting period. The fair value less the estimated point-of-sale costs of the apple trees at 31 March 2014 (the end of the previous reporting period) was $95,000 and, at 31 March 2015, $109,000. During the reporting period ending 31 March 2015, employee expenses, fertilisers, lease expenses and other expenses amounted to $40,000. The fair value less estimated point-of-sale costs of the apples immediately after picking and packing amounted to $120,000. Picking and packing costs amounted to $30,000. Required: Prepare the journal entries to record as at 31 March 2015: a) The costs incurred to maintain the biological assets; b) The harvesting of the agricultural produce from the biological asset; c) The sale of the agricultural produce; and d) The changes in the fair value of the biological assets between ends of the two reporting periods