Red Farm purchased the countryside Vineyard at an estate auction in April 2019 for €1,250,000. The purchase was risky because the growing season was coming to an end, the grapes must be harvested in...

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Extracted text: Red Farm purchased the countryside Vineyard at an estate auction in April 2019 for €1,250,000. The purchase was risky because the growing season was coming to an end, the grapes must be harvested in the next several weeks, and Red has limited experience in carrying off a grape harvest. At the end of the first quarter of operations, Red is feeling pretty good about his early results. The first harvest was a success; 500 bushels of grapes were harvested with a value of €50,000 (based on current local commodity prices at the time of harvest). And, given the strong yield from area vineyards during this season, the net realizable value of Red's vineyard has increased by €25,000 at the end of the quarter. After storing the grapes for a short period of time, Red was able to sell the entire harvest for €60,000. Instructions (you have the option to upload the answer sheet) (2) Prepare the journal entries for the countryside biological asset (grape vines) for the first quarter of operations (the beginning carrying and net realizable value is €1,250,000). (b) Prepare the journal entry for the grapes harvested during the first quarter. (c) Prepare the journal entryto record the sale of the grapes harvested in the first quarter. (d) Determine the total effect on income for the quarter related to the countryside biological asset and agricultural produce.