Find what is the value that must be used for the preparation

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Boy Macho Farming Co. also grows wheat and sometimes enters into contracts for future sales of the wheat.

Problem 1: While the wheat is still growing, Boy Macho Farming Co. enters into another contract for the future sale of 120 tons of wheat at 550 bucks per ton Before the year-end, it harvests 50 tons of wheat at a time when the fair value loss costs to sell of the wheat is 500 bucks per ton. At the year-end this value had declined to 480 bucks per ton. The financial statements are drawn up before any of the wheat has been sold, and the value has by then recovered to 490 bucks per ton. What is the value that must be used for the preparation of the financial statements?

Reference no: EM132903339

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