Tarheel Farm, Inc. (TFI) is a North Carolina corporation involved in agricultural production and has an October 31 fiscal year-end. It is not publicly traded, but it is required to prepare annual financial statements complying with U.S. GAAP for its bank. TFI typically produces four products: beef cattle, corn, winter wheat, and sugar beets. All four of these products have a life cycle of less than 1 year. The following information is available as of October 31:

TFI had 400 acres of field corn planted. The corn will not be harvested until next month. The accumu-lated cost of the corn is $95,000. The estimated selling costs are $4,500. The current market value of land is $5,000 per acre. Although there is no current market value available for land growing a corn crop on it, TFI is certain that this land would sell for more than $2,200,000.

TFI had 6,000 bushels of winter wheat harvested and stored in its grain bins. The accumulated cost of the wheat is $27,000. The current market price at the local elevator is $6.10 per bushel. The market price of wheat has increased 10 cents per bushel since the wheat was harvested. The transportation costs from the farm to the elevator are about 5 cents per bushel.

TFI has a herd of cattle, including heifers and steers, that have not yet been weaned. TFI does not antici-pate keeping any of the heifers for its breeding herd. The accumulated cost of the heifers and steers is $50,000. The expected selling costs are $2,000. The replacement cost and selling price for these heifers and steers is $70,000.

Finally, TFI has 200 tons of sugar beets harvested. The accumulated costs are $25 per ton. TFI antici-pates selling costs of $3 per ton. Due to the rarity of the production of sugar beets in North Carolina, there is no local market for sugar beets. TFI sold a few tons of sugar beets two months ago for $50 a ton; however, the market is not stable at this time.

Prepare a memo to the file regarding the valuation of TFIs products at year-end. Support your conclusions using the Codification.