A farm acquires lumber trees for $$250,000$ on $1$ March $207,$ which represents their fair value. The fair value of the trees at the reporting date $31$ December $20x7$ is $$280,000.$ The trees will be grown for $5$ years and then felled and sold. Costs to sell are $5\%$ of fair value.

Which of the following statements is true?

Please select the right answer. $$

The trees are initially measured at $$250,000$

The trees are measured at $$208,333$ at $31$ December $20$X$7$

The trees are measured at $$280,000$ at $31$ December $20$X$7$

The trees are measured at $$266,000$ at $31$ December $20$X$7$