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Question - Ardlethan Limited owns an extensive vineyard that sells grapes directly to a number of local winemakers. The vines are currently recognised at $850,000. Costs incurred in maintaining the orchard in the current year amounted to $65,000. The fair value of the 2 tonne harvest (June 15th) after picking and packing amounted to $220,000. Picking and packing amounted to $7,000. One tonne of grapes was sold immediately upon harvest to Hardly Brothers with sales costs of $3000 and the second tonne was held as inventory. Unfortunately owing to a glut of grapes this season the value of the grapes halved by year end and the vineyard's fair value dropped to $450,000 at year end. Prepare journal entries for Ardlethan's agricultural assets.
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