In 2013, Fabulous Fruit expanded its operations in Georgia to include growing peaches for commercial canning companies. Land was prepared, irrigation systems installed and 3,000 “whips” (baby trees)were planted. It is expected that the trees will be ready for commercial production by 2016. At that time, Fabulous will begin selling the entire crop for canning. The trees will not produce a large enough crop for commercial canning before 2016. In 2014 and 2015,small quantities of fruit will be harvested and sold at local farmers’markets. Fabulous wants to know how to properly account for thosesales.
Required: Use FASB. Submit only one paragraph containing your recommendation (no excerpts). Include in-text citation.