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Question 7. A farm acquires lumber trees for $250,000 on 1 March 20X7, which represents their fair value. The fair value of the trees at the reporting date 31 December 20X7 is $280,000. The times 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? The trees are initially measured at $250,000 The trees are measured at $208,333 at 31 December 20X7 The trees are measured at $280,000 at 31 December 20X7 The trees are measured at $266,000 at 31 December 20X7