On March 1 2023, Blossom Winery Ltd. purchased a five-hectare commercial vineyard for $1.049,050. The total purchase price was based on appraised market values of the building, grapevines, and equipment ($579,700. $259,600, and $209,750, respectively). Blossom Winery incurred the following cash expenditures between March 1 and June 30, the date of Blossom Winery's first harvest from the grapevines: Major repairs to sprayer equipment $27,600 Grapevine fertilizer 6.740 Phase 1 construction of a new grape trellis system for the grapevines 30,510 Construction of a new custom wine cellar 61,670 Harvesting labour 35,690 The fair value of the grapevines was estimated to have increased to $294,600 by December 31, 2023, the company's fiscal year end. and any sale of vineyard assets would attract a 3% realtor commission. Blossom Winery prepares financial statements in accordance with IFRS. (a1) What is the carrying amount of the grapevines on the statement of financial position at December 31, 2023 under the revaluation method?

On March 1 2023, Blossom Winery Ltd. purchased a five-hectare commercial vineyard for $1.049,050. The total purchase price was based on appraised market values of the building, grapevines, and equipment ($579,700. $259,600, and $209,750, respectively). Blossom Winery incurred the following cash expenditures between March 1 and June 30, the date of Blossom Winery's first harvest from the grapevines: Major repairs to sprayer equipment $27,600 Grapevine fertilizer 6.740 Phase 1 construction of a new grape trellis system for the grapevines 30,510 Construction of a new custom wine cellar 61,670 Harvesting labour 35,690 The fair value of the grapevines was estimated to have increased to $294,600 by December 31, 2023, the company's fiscal year end. and any sale of vineyard assets would attract a 3% realtor commission. Blossom Winery prepares financial statements in accordance with IFRS. (a1) What is the carrying amount of the grapevines on the statement of financial position at December 31, 2023 under the revaluation method?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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