Fresh Oranges Inc. planted an orchard of orange trees that produce 1,500 kg of oranges per year.

Question:

Fresh Oranges Inc. planted an orchard of orange trees that produce 1,500 kg of oranges per year. The orange trees have an expected life of 50 years. Fresh Oranges follows ASPE.
(a) Explain how the orange trees should be recognized, including costs to acquire and develop the trees.
(b) Explain how the orange trees should be amortized.

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