2000 District FFA
Farm Management Contest
Multiple Choice Section
The Farm Management Contest is designed to test student understanding of the
application of economic principles in farm management. Each question is worth
three (3) points.
Please place your answers in the appropriate box on the score sheet provided.
There is only one correct answer to each question.
1. A farmer purchases 500-pound feeder steers for 90 cents per pound and
plans to sell the steers at 800 pounds. The farmer estimates the total
cost of gain to be 46 cents per pound. The nearest breakeven price when
the steers are sold at 800 pounds is
A. 58.13 cents/pound
B. 64.75 cents/pound
C. 73.50 cents/pound
D. 76.78 cents/pound
E. None of the above
2. How many total acres are included in "SW 1/4 of NE 1/4 and NE 1/4 of SW
1/4 of Section 15, Twp. 10N, R4W of the 5th Principle Meridian"?
A. 80 acres
B. 120 acres
C. 160 acres
D. 320 acres
E. None of the above
3. How much perimeter fence would be required to completely enclose the
parcel of land described in question 3?
A. 1.0 mile
B. 1.5 miles
C. 2.0 miles
D. 2.5 miles
E. None of the above
4. A soybean producer decides to store his soybeans in the local elevator
for three months. The price at harvest is $6.00 per bushel and the
elevator charges 2 cents per bushel per month for storage plus a 5 cents
per bushel handling charge. He has 5,000 bushels to sell and must borrow
$30,000 at 8% annual interest while he stores the soybeans. What price
must he receive for his soybeans to break even and cover his storage and
opportunity costs?
A. $6.23
B. $6.32
C. $6.39
D. $6.44
E. None of the above
5. A farmer is purchasing a new baler at a cost of $24,000. His dealer will
finance the baler under the following terms: 10% down payment with the
balance repaid in equal payments over the next five years at 8% APR. The
farmer expects the baler to last for 7 years and have a salvage value of
$5,000. How much interest will the farmer pay the first year of the
loan?
A. $1,728
B. $2,340
C. $2,800
D. $3,120
E. None of the above
6. If the interest rate is 10%, what is the present value of a dollar to be
received by a producer two years from now?
A. $0.826
B. $0.900
C. $1.100
D. $1.210
E. None of the above
7. How many pounds of 48% protein supplement must be mixed with 7% protein
corn to make a ton of 16% protein feed?
A. 321 pounds
B. 400 pounds
C. 439 pounds
D. 487 pounds
E. None of the above
8. A feedlot operator buys feeder steers, finishes them, and sells them.
The operator estimates that finished steers will sell for $63 per cwt.
and that it will cost $230 per head to bring them from the 750 pound
purchase weight to the 1100 pound selling weight. What is the highest
price the operator can pay for 750 pound feeder steers to break even?
A. $61.73/cwt.
B. $70.25/cwt.
C. $76.14/cwt.
D. $82.50/cwt.
E. None of the above
9. What will the breakeven bid price for 750 pound feeder steers be in the
above question if high priced corn causes feeding costs to increase to
$315 per head?
A. $54.00/cwt.
B. $62.45/cwt.
C. $66.14/cwt.
D. $378/head
E. None of the above
10. A $1 deductible expense (before tax) will cost ______ after tax if the
farmer's marginal tax rate is 40%.
A. $0.00
B. $0.40
C. $0.60
D. $1.00
E. None of the above
11. The demand curve shows the relationship between
A. consumer tastes and the quantity demanded.
B. price and the quantity demanded.
C. price and production costs.
D. money income and quantity demanded.
E. None of the above
12. A $50,000 loan is amortized at 8% interest for 7 years yields annual
payments of $9,604.30. How much of the first year's payment is
principal?
A. $4,000.00
B. $4,604.30
C. $5,604.30
D. $9,604.30
E. None of the above
13. A vicious cold spell in the late spring has wiped out the buds on the
peach trees grown in Georgia, a major peach producing state. How will
this freeze impact the price received for peaches by Maryland peach
producers?
A. No effect -- Georgia is too far away to have any impact on
Maryland.
B. Will lower the price because the demand for peaches will be lower.
C. Because of the reduced supply, prices for peaches in Maryland will
tend to move upward.
D. No effect -- Maryland does not grow enough peaches to have any
impact on prices.
E. None of the above
14. The primary purpose of the current ratio is to
A. determine tax liabilities.
B. determine short-run farm profitability.
C. determine the current relationship of production and marketing
activities.
D. determine ability to meet immediate financial obligations.
E. None of the above
15. A grain farmer who normally stores his soybeans at a local elevator has
decided to use the options market to create a synthetic storage. To do
so he will sell his beans at harvest and
A. buy a put option.
B. sell a put option.
C. buy a call option.
D. sell a call option.
E. None of the above
16. If the grain farmer in the above problem suffers a loss on his options
contract, then this loss will be taxed as
A. an ordinary loss.
B. a capital loss.
C. a non-deductible farm expense.
D. a personal expense.
E. None of the above
17. A farmer has a debt : worth ratio of 2 : 1. The current liabilities
total $50,000 and the non-current liabilities total $90,000. What is the
value of the assets?
A. $280,000
B. $210,000
C. $140,000
D. $70,000
E. None of the above
18. A cattle feeding operation has sales of $60,000, feed purchases of
$40,000, other costs of $2,000, an opening inventory of $48,000, and a
closing inventory of $32,000. What is the net farm income for this
operation on an accrual basis?
A. $2,000
B. $10,000
C. $18,000
D. $20,000
E. None of the above
19. Which of the following is considered Schedule F farm income?
A. Cull breeding stock
B. Crop sales
C. Sales of farm equipment
D. Sale of land
E. Both A & B
20. If corn silage as fed contains 62% moisture and 2.5% protein, the dry
matter would be what percent protein?
A. 2.80
B. 3.08
C. 5.71
D. 6.58
E. None of the above
21. A producer sells 9 feeder steers for $58/cwt. The average weight per
steer is 700 pounds. There is a 2.5% sales commission and yardage fees
of $2.30 per head. The net amount received for the pen of steers would
be
A. $3,541.95
B. $4,156.20
C. $4,240.80
D. $4,618.00
E. None of the above
22. A farmer wants to know the rate of return earned on an investment. The
net worth is $200,000 and liabilities are $100,000. The return to farm
capital is $30,000. What is the rate of return on the investment?
A. 5%
B. 10%
C. 20%
D. 30%
E. None of the above
23. USDA is forecasting 1999-2000 U.S. soybean exports at 24 million metric
tonnes. Since beans weigh 60 pounds per bushel, this is equal to
A. 164 million bushels
B. 882 million bushels
C. 1.64 billion bushels
D. 1.80 billion bushels
E. None of the above
24. On April 10, 1998, the exchange rate between the Japanese yen and U.S.
dollars was 112 yen/dollar. On April 10, 1999, the exchange rate was 120
yen/dollar. This change in the exchange rate would be expected to cause
the price of U.S. goods in Japan to
A. be 7% more expensive.
B. be 7% less expensive.
C. increase by 8 yen.
D. decrease by 8 yen.
E. None of the above
25. If grain sorghum has 97% of the feeding value of corn on a pound-for-
pound basis and corn is selling for $2.25 per bushel, then a
hundredweight of grain sorghum is worth
A. $2.18
B. $3.65
C. $3.90
D. $4.02
E. None of the above
26. Corn has an expected yield of 125 bushels per acre and a production cost
of $180.00 per acre. Expected market prices are $2.00 per bushel for
corn and $5.25 per bushel for soybeans. Soybeans can be raised at a
production cost of $110 per acre. At what breakeven yield per acre would
soybeans generate the same net return per acre as corn?
A. 34.3 bushels
B. 36.4 bushels
C. 37.3 bushels
D. 40.2 bushels
E. None of the above
27. Which of the following is not a type bankruptcy?
A. Chapter 7
B. Chapter 11
C. Chapter 12
D. Chapter 13
E. None of the above
28. A farmer who wants a real rate of return on his investment of 5% will use
what discount rate if he anticipates inflation of 2% per year?
A. 2%
B. 3%
C. 5%
D. 7%
E. None of the above
29. An increase in the rate of inflation, everything else equal, will have
what impact on the present value of a future stream of income?
A. No impact
B. Increase the present value
C. Decrease the present value
D. Cannot tell
E. None of the above
30. When the size of the soybean harvest exceeds locally available farm and
elevator storage, what happens to the basis?
A. Basis narrows.
B. Basis widens.
C. Basis goes out of existence.
D. Basis is usually the same all year long.
31. The money you must deposit with a broker to insure performance in order
to trade in the futures market is called
A. basis.
B. margin.
C. commission.
D. spread.
E. None of the above
32. As a farmer plants more acres of a crop, which of the following costs is
least likely to change?
A. Total variable costs
B. Average variable costs per acre
C. Average fixed costs per acre
D. Average total costs per acre
E. Both C and D
33. The Taxpayer Relief Act of 1997 reduced the maximum capital gains tax
rate to _____% for items (other than collectibles) that are held more
than 18 months.
A. 28%
B. 25%
C. 20%
D. 18%
E. None of the above
34. If you buy a 35-pound feeder pig for 90 cents per pound and sell the same
animal at 265 pounds for 45 cents per pound, your breakeven cost of
production per pound of gain is:
A. 30.5 cents
B. 30.9 cents
C. 36.2 cents
D. 38.2 cents
E. None of the above
35. For tax year 1999, the social security wage base was
A. $62,700
B. $65,400
C. $68,400
D. $72,600
E. None of the above
36. A farmer should issue an IRS Form 1099 for which of the following?
A. $750 paid to a neighbor for hay.
B. $500 paid to a neighbor for custom work.
C. $1500 paid to a neighbor for a bull.
D. $650 paid to a neighbor for land rent.
E. All of the above
37. An LLC (Limited Liability Company) is usually
A. taxed like a corporation.
B. taxed like a partnership.
C. not for profit and therefore not taxed.
D. illegal in Missouri.
E. None of the above
38. The IRS form used to calculate self-employment tax is
A. Schedule D.
B. Form 4797.
C. Form 4562.
D. Schedule SE
E. None of the above
39. Frank's beginning balance sheet showed $50,000 in corn stored at the
local elevator. Which of these explains his ending balance sheet entry
of $40,000 corn stored at the local elevator.
A. He sold $10,000 of corn during the year.
B. The price of corn was lower at the end of the year.
C. He had less corn stored at the end of the year than the beginning.
D. All of these could explain the decrease.
E. None of these would explain the decrease.
40. Other things equal, the value of land will be greatest to the farmer who
has the
A. longest planning horizon.
B. shortest planning horizon.
C. highest discount rate.
D. lowest discount rate.
E. None of the above
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2000 DISTRICT FFA FARM MANAGEMENT CONTEST
Problems Section
Choose the best answer and mark the corresponding numbered space on the answer
sheet. Each question is worth four (4) points. There is only one correct
answer for each question.
PROBLEM I - Balance Sheet
Using the information below, complete the net worth statement for January 1,
2000:
Land . . . . . . . . . . . . . . . . . . . . $207,000
Accounts payable . . . . . . . . . . . . . . 6,500
Machinery and equipment. . . . . . . . . . . 61,000
Cows . . . . . . . . . . . . . . . . . . . . 16,000
Calves . . . . . . . . . . . . . . . . . . . 3,600
Sows and boars . . . . . . . . . . . . . . . 15,000
Market hogs . . . . . . . . . . . . . . . . 50,000
Checking and savings . . . . . . . . . . . . 17,800
Wheat. . . . . . . . . . . . . . . . . . . . 4,800
Hog buildings . . . . . . . . . . . . . . . 47,000
Feed and hay . . . . . . . . . . . . . . . . 8,500
Accrued interest owed. . . . . . . . . . . . 14,900
Accrued taxes owed . . . . . . . . . . . . . 15,100
30-year land loan balance is $120,000.
$9,000 plus interest is due February 1 of each year.
10-year hog building loan balance is $44,000.
$11,000 plus interest is due August 31 of each year.
5-year tractor loan balance is $38,216.
$9,554 plus interest is due each February 1.
Current Assets: Current Liabilities:
__________________________________ ___________________________________
__________________________________ ___________________________________
__________________________________ ___________________________________
__________________________________ ___________________________________
__________________________________ ___________________________________
__________________________________ ___________________________________
__________________________________ ___________________________________
__________________________________ ___________________________________
Total _________________ Total __________________
Non-current Assets: Non-current Liabilities:
__________________________________ ___________________________________
__________________________________ ___________________________________
__________________________________ ___________________________________
__________________________________ ___________________________________
__________________________________ ___________________________________
__________________________________ ___________________________________
__________________________________ ___________________________________
__________________________________ ___________________________________
Total _________________ Total __________________
Total Assets _________________ Total Liabilities __________________
Net Worth _________________
Questions 1 through 7 refer to PROBLEM I
1. The total value of current assets on January 1, 2000, was:
A. $81,100
B. $84,700
C. $91,200
D. $99,700
E. None of the above
2. The total value of non-current assets was:
A. $346,000
B. $358,000
C. $361,600
D. $411,600
E. None of the above
3. The total value of current liabilities was:
A. $30,000
B. $50,000
C. $66,054
D. $88,216
E. None of the above
4. The total value of non-current liabilities was:
A. $120,000
B. $172,662
C. $202,216
D. $232,216
E. None of the above
5. The net worth was:
A. $191,984
B. $232,216
C. $358,000
D. $442,700
E. None of the above
6. The current ratio was:
A. 0.197
B. 0.245
C. 0.780
D. 1.282
E. None of the above
7. The debt to asset ratio was:
A. 0.499
B. 0.554
C. 0.780
D. 1.804
E. None of the above
PROBLEM II -- Enterprise Budget
Use the dairy cow budget on the next page to answer Questions 8 through 16.
8. Total operating cost per cow is:
A. $521.95
B. $588.65
C. $2,301.76
D. $2,823.71
E. None of the above
9. The return above total operating cost per cow is:
A. $66.70
B. $455.25
C. $501.52
D. $521.95
E. None of the above
10. How many hours of labor are budgeted per cow?
A. 10.69
B. 43.40
C. 60.36
D. 260.40
E. None of the above
_________________________________________________________________
DAIRY COW REPLACEMENTS IN 100 COW HERD
20,000 pounds of milk sold per year per cow unit
39% replacement rate
Operating Inputs Units Price Quantity Value
Gov Dvsrn asses Cwt 0.05 200.00 10.00
Promotion assess Cwt 0.15 200.00 30.00
Milk hauling Cwt 0.57 200.00 14.00
Dairy ration, 16% Cwt 8.70 98.67 858.43
Hay Tons 95.00 5.59 531.05
Salt & minerals Lbs 0.15 130.00 19.50
Milk replacer Lbs 0.75 5.00 3.75
Calf starter Lbs 0.11 50.00 5.50
Pasture AUMS 16.00 3.48 55.68
Breeding fees Dol 25.00 1.00 25.00
Vet medicine Dol 52.00 1.00 52.00
Supplies Dol 39.00 1.00 39.00
Accounting Hd 18.00 1.00 18.00
Utilities Dol 47.00 1.00 47.00
Machinery labor Hr 6.00 10.69 64.18
Equipment labor Hr 6.00 6.27 37.62
Livestock labor Hr 6.00 43.40 260.40
Mach fuel, lube, repair 102.91
Equip fuel, lube, repair 27.74
Total Operating Costs 2301.76
____________________________________
Fixed Costs Amount Value
Machinery
Interest @ 10.675% 371.17 39.62
Depr, taxes, insurance 54.98
Equipment
Interest @ 10.675% 452.75 48.33
Depr, taxes, insurance 70.22
Livestock
Dairy cow, 20,000 1475.00
Dairy heifer, 20,000 520.00
Dairy repl. heifer 20,000 273.00
Interest @ 10.675% 2268.00 242.11
Total Fixed Costs 455.25
______________________________________
Production Units Price Quantity Value
Milk Cwt 12.90 200.00 2580.00
Dairy cows Cwt 43.00 4.44 190.92
Dairy bull calf Hd 105.00 0.48 50.41
Dairy heifers Cwt 60.00 0.04 2.38
Total Receipts 2823.71
_______________________________________
Returns above total operating costs 521.95
Returns above all specified costs 66.70
_________________________________________________________________
11. What price per ton is paid for hay?
A. $5.59
B. $95.00
C. $211.86
D. $531.05
E. None of the above
12. What is the total budgeted interest cost per cow?
A. $330.06
B. $1,188.49
C. $3,091.92
D. $3,190.59
E. None of the above
13. If each cow is milked for 305 days, how many pounds of milk are given
per cow per day on average?
A. 8.46
B. 12.90
C. 65.57
D. 200.00
E. None of the above
14. What price per pound is paid for hay?
A. 2.66 cents
B. 4.75 cents
C. 5.59 cents
D. 26.51 cents
E. None of the above
15. What interest rate is used in this budget?
A. 3.900%
B. 10.675%
C. 12.500%
D. 16.000%
E. None of the above
16. If cull cow prices drop to 39 cents per pound and bull calves sell for
$50 each, what will be total receipts per cow?
A. $2,757.34
B. $2,779.54
C. $2,783.75
D. $2,797.31
E. None of the above
PROBLEM III -- Income Tax Management
Use the tables at the end of this exam to calculate depreciation on the
following item.
On April 5, 1999, Sam traded planters. The old planter had a remaining
undepreciated value of $3,709. Sam paid $17,000 "boot" in the trade for the
new planter.
17. The planter is:
A. 3-year property
B. 5-year property
C. 7-year property
D. 10-year property
E. None of the above
18. If Sam does not expense any of the cost of the planter, then 1999
depreciation will be (use regular MACRS and mid-quarter convention):
A. $1,714.24
B. $2,111.62
C. $2,544.67
D. $2,773.56
E. None of the above
19. If Sam expenses the maximum on the planter trade, and uses the mid-
year convention and regular MACRS, then 1999 depreciation will be:
A. $129.53
B. $161.92
C. $183.10
D. $397.38
E. None of the above
20. If Sam expenses the maximum and uses the mid-year convention and
straight line depreciation over the alternate MACRS life, his 1999
depreciation will be:
A. $85.45
B. $122.07
C. $185.45
D. $985.45
E. None of the above
21. If Sam uses regular MACRS, then the first year the planter will appear
on Sam's January balance sheet with a zero book value will be in
A. 2005.
B. 2006.
C. 2007.
D. 2008.
E. None of the above
22. Under MACRS, a computer is classified as
A. 3-year property
B. 5-year property
C. 7-year property
D. 10-year property
E. None of the above
PROBLEM IV -- Supply and Demand
(graph in separate file)
The above graph represents the supply of wheat (S), the demand for wheat in
the U.S. (DUS), the demand for wheat for export (DF), and the total demand of
for wheat (DT).
23. What is the market equilibrium price of wheat in the U.S.?
A. P1
B. P2
C. P3
D. P4
E. None of the above
24. At the market equilibrium price, how much wheat will be used in the
U.S.?
A. Q1
B. Q2
C. Q3
D. Q4
E. Q5
25. At the market equilibrium price, how much wheat will be exported?
A. Q1
B. Q2
C. Q3
D. Q4
E. Q5
26. Without foreign demand, the equilibrium price of wheat would be
A. P1
B. P2
C. P3
D. P4
E. P5
For Questions 27 and 28, include foreign demand and assume higher yields per
acre cause the supply to increase from S to S1
27. The increased supply of wheat should cause wheat demand to
A. shift to the left and up.
B. shift to the right and down.
C. not change.
D. None of the above
28. Higher wheat yield would cause
A. exports of wheat to go up.
B. the equilibrium price of wheat to go down.
C. Both of the above
D. the foreign demand for wheat to shift left.
E. None of the above
PROBLEM V - Marketing
On July 10, a farmer has 5,000 bushels of wheat in his bins. He sells it on
January 15. Ignore commissions, storage cost, and interest.
July 10 quotes: January 15 quotes:
March futures price = $3.70 March futures price = $3.45
Expected basis = $0.10 under the board Basis = $0.05 under the board
Strike ---- Premiums ---- ---- Premiums ----
price Call Put Call Put
$3.10 $0.73 $0.01 $0.58 $0.01
$3.20 $0.63 $0.02 $0.48 $0.02
$3.30 $0.53 $0.03 $0.38 $0.04
$3.40 $0.43 $0.08 $0.28 $0.11
$3.50 $0.33 $0.15 $0.19 $0.19
$3.60 $0.24 $0.24 $0.12 $0.29
29. What is the cash price of wheat on January 15?
A. $3.40
B. $3.45
C. $3.50
D. $3.60
E. None of the above
30. If the farmer sold a futures contract on July 10 and bought back the
contract on January 15, what would be the realized price per bushel
(cash + net on futures) for the wheat?
A. $3.15
B. $3.25
C. $3.40
D. $3.65
E. None of the above
31. If the farmer bought a $3.40 Put on July 10 and sold the Put on
January 15, what would be the realized price per bushel (cash + net on
options) for his wheat?
A. $3.25
B. $3.37
C. $3.43
D. $3.55
E. None of the above
32. If the farmer bought a $3.40 Put and sold a $3.40 Call on July 10, and
sold the Put and bought back the Call on January 15, what would be the
realized price per bushel (cash + net on options) for his wheat?
A. $3.22
B. $3.34
C. $3.46
D. $3.58
E. None of the above
33. Given all the information above, which of the following actions taken
on July 10 turned out to be the most profitable?
A. Selling a futures contract.
B. Buying a $3.40 Put option.
C. Buying a $3.40 Put and selling a $3.40 Call.
D. Selling the wheat on July 10.
E. Taking no market action.
PROBLEM VI - Loan Payments
Loan Amortization: You have a $10,000 loan to be paid back over 5 periods in
equal payments.
Outstanding Payment Payment
Principal Loan Portion Portion
Period before Payment Payment Interest Principal
1 $10,000.00 $2,373.96 $600.00 A
2 $8,226.04 $2,373.96 $493.56 $1,880.40
3 B $2,373.96 $380.74 $1,993.23
4 $4,352.41 $2,373.96 C $2,112.82
5 $2,239.59 $2,373.96 $134.37 D
34. The value of A is
A. $1,773.96
B. $1,788.41
C. $1,795.12
D. $1,809.44
E. None of the above
35. The value for B is
A. $6,272.91
B. $6,345.64
C. $6,363.89
D. $6,411.52
E. None of the above
36. The value for C is
A. $246.10
B. $253.91
C. $261.14
D. $272.67
E. None of the above
37. The value for D is
A. $2,184.65
B. $2,198.44
C. $2,218.68
D. $2,239.59
E. None of the above
38. What interest rate is used for this loan?
A. 6.00%
B. 7.75%
C. 8.23%
D. 17.74%
E. None of the above
39. At the beginning of last year, a farmer had an outstanding loan for
$217,480. The interest rate was 10% APR. If the farmer made one loan
payment at the end of the year of $35,000, what was the outstanding
balance at the end of the year?
A. $13,252
B. $21,748
C. $182,480
D. $204,228
E. None of the above
40. On April 1, 1999, Kate borrowed $25,000 to plant corn. On November 1,
1999, she repaid the $25,000 along with $1,239.58 interest. What
annual interest rate did she pay?
A. 8.50%
B. 9.25%
C. 9.75%
D. 10.50%
E. None of the above
ANNUAL DEPRECIATION PERCENTAGES FOR 5-YR PROPERTY, 150% DB
_________________________________________________________________
MID-QUARTER CONVENTION
Tax MID-YEAR Quarter placed in service --
Year CONVENTION 1 2 3 4
1 15.000% 26.250% 18.750% 11.250% 3.750%
2 25.500 22.125 24.375 26.625 28.875
3 17.850 16.520 17,062 18.637 20.212
4-5 16.660 16.520 16.763 16.567 16.404
6 8.330 2.065 6.287 10.354 14.355
Total 100.000 100.000 100.000 100.000 100.000
_________________________________________________________________
ANNUAL DEPRECIATION PERCENTAGES FOR 7-YR PROPERTY, 150% DB
_________________________________________________________________
MID-QUARTER CONVENTION
Tax MID-YEAR Quarter placed in service --
Year CONVENTION 1 2 3 4
1 10.714% 18.750% 13.393% 8.036% 2.679%
2 19.133 17.411 18.559 19.707 20.854
3 15.033 13.680 14.582 15.484 16.386
4 12.249 12.160 12.221 12.275 12.874
5-7 12.249 12.160 12.221 12.275 12.182
8 6.124 1.520 4.582 7.673 10.661
Total 100.000 100.000 100.000 100.000 100.000
_________________________________________________________________
ANNUAL FRACTIONS FOR STRAIGHT LINE OVER N YEARS (N less than 26)
_________________________________________________________________
MID-QUARTER CONVENTION
Tax MID-YEAR Quarter placed in service --
Year CONVENTION 1 2 3 4
1 1/2 7/8 5/8 3/8 1/8
2-N 1 1 1 1 1
N+1 1/2 1/8 3/8 5/8 7/8
_________________________________________________________________
Depreciation formula: Basis divided by N times number from above
table.
ANNUAL FRACTIONS FOR 27 1/2 YEAR PROPERTY, REGULAR MACRS
_________________________________________________________________
Tax Month Placed in Service --
Year 1 2 3 4 5 6 7 8 9 10 11 12
1 11.5 10.5 9.5 8.5 7.5 6.5 5.5 4.5 3.5 2.5 1.5 0.5
2-27 12 12 12 12 12 12 12 12 12 12 12 12
28 6.5 7.5 8.5 9.5 10.5 11.5 12 12 12 12 12 12
29 -- -- -- -- -- -- 0.5 1.5 2.5 3.5 4.5 5.5
_________________________________________________________________
Depreciation formula: Basis divided by 27 1/2 divided by 12 times
number from above table.
ANNUAL FRACTIONS FOR 39 YEAR PROPERTY, REGULAR MACRS
_________________________________________________________________
Tax Month Placed in Service --
Year 1 2 3 4 5 6 7 8 9 10 11 12
1 11.5 10.5 9.5 8.5 7.5 6.5 5.5 4.5 3.5 2.5 1.5 0.5
2-39 12 12 12 12 12 12 12 12 12 12 12 12
40 0.5 1.5 2.5 3.5 4.5 5.5 6.5 7.5 8.5 9.5 10.5 11.5
_________________________________________________________________
Depreciation formula: Basis divided by 39 divided by 12 times number
from above table.
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2000 DISTRICT FFA FARM MANAGEMENT CONTEST
Key
Multiple Choice
1. C 11. B 21. A 31. B
2. A 12. C 22. B 32. B
3. C 13. C 23. B 33. C
4. A 14. D 24. A 34. D
5. A 15. C 25. C 35. D
6. A 16. B 26. A 36. D
7. C 17. B 27. E 37. B
8. A 18. A 28. D 38. D
9. D 19. B 29. C 39. D
10. C 20. D 30. B 40. D
Problems
1. B 11. B 21. C 31. C
2. A 12. A 22. B 32. D
3. C 13. C 23. D 33. A
4. B 14. B 24. B 34. A
5. A 15. B 25. A 35. B
6. D 16. B 26. B 36. C
7. B 17. C 27. C 37. D
8. C 18. D 28. C 38. A
9. D 19. D 29. A 39. D
10. C 20. C 30. D 40. A