A farm buys beef cattle for $40,000 at the end of 20X7. The cost to feed, shelter, and grow the cattle was $12,700 and 6,300 in 20X8 and 20X9, respectively. On 2 May 20X9, the cattle were slaughtered at a cost of $8,200. The fair value of the carcasses is $75,000. On 5 May 20X9, the carcasses are processed into different cuts (steak, roast) for $4,300 and sold for $93,000.

Required:

1. Prepare the journal entries for 20X7, 20X8, and 20X9 under ASPE.

2. Calculate the gross margin on the sale of the carcasses.