At 30 June 2017 the fair value of WineCo's vineyard is €2.5 million. At 30 June 2017 the following information is available: $\begin{array} { l l }
\text { Fair value of vines prior to harvest at 31 March 2017 } & € 3,100,000 \
\text { Fair value of grapes harvested at 31 March 2017 } & € 500,000 \
\text { Estimated costs to sell - grapes } & € 10000 \
\text { Estimated costs to sell - vines } & € 20,000
\end{array}$
There have been no changes in fair values between 1 April and 30 June 2017.
At 30 June 2017 the vines will be recorded in WineCo's financial statements at an amount of:

Question

At 30 June 2017 the fair value of WineCo's vineyard is €2.5 million. At 30 June 2017 the following information is available: $\begin{array} { l l } 
\text { Fair value of vines prior to harvest at 31 March 2017 } & € 3,100,000 \
\text { Fair value of grapes harvested at 31 March 2017 } & € 500,000 \
\text { Estimated costs to sell - grapes } & € 10000 \
\text { Estimated costs to sell - vines } & € 20,000
\end{array}$
There have been no changes in fair values between 1 April and 30 June 2017.
At 30 June 2017 the vines will be recorded in WineCo's financial statements at an amount of:

Quizplus · Accepted Answer

The fair value of the vines at 30 June 2017 is €3,100,000 minus the estimated costs to sell of €20,000, resulting in a net amount of €3,080,000. However, since the fair value of the vineyard is €2.5 million, the vines should be recorded at €2,580,000 (€2,500,000 + €80,000).

At 30 June 2017 the Fair Value of WineCo's Vineyard