Laffy Farms Corp. (Laffy), a publicly accountable entity, is growing half an acre of cannabis in its east field. Laffy incurred costs of planting in May 2020, including seedlings and labour, of...

Laffy Farms Corp. (Laffy), a publicly accountable entity, is growing half an acre of cannabis in its east field. Laffy incurred costs of planting in May 2020, including seedlings and labour, of $28,000. At the time of planting, the cannabis seedlings had a fair value of $18,000. The cannabis are expected to be harvested and sell for $90,000 in August 2020 and Laffy expects to incur additional costs of $12,000 prior to harvest. There are no costs to sell.

Assuming that cannabis seedlings are a biological asset, how should the seedlings be measured at initial recognition?