2000 District FFA
Farm Management Contest
2002 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.
Choose the best answer and mark the appropriate box on the score sheet.
There is only one correct answer to each question.
1. If the interest rate is 10%, what is the present value of a dollar to
be received one year from now?
A. $0.826
B. $0.909
C. $1.100
D. $1.210
E. None of the above
2. Farmer Brown purchases a new tractor. A record keeping system which
records both the addition to equipment and the reduction of cash is
called
A. income statement.
B. dual effect.
C. balance sheet.
D. double entry.
E. None of the above
3. The cost of producing one additional unit of output is called
A. opportunity cost.
B. substitution cost.
C. average cost.
D. marginal cost.
E. None of the above
4. 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.
5. A Subchapter S corporation can have no more than
A. 10 shareholders.
B. 15 shareholders.
C. 35 shareholders.
D. 75 shareholders.
E. There is no limit on number of shareholders.
6. The capital gains taxes that would be due should a farmer sell his
land is an example of a
A. current liability.
B. long-term liability.
C. deductible expense.
D. contingent liability.
E. None of the above
7. Which of the following statements regarding accrued interest is most
nearly true?
A. Beginning accrued interest will always be less than ending
accrued interest.
B. Beginning accrued interest will always be greater than ending
accrued interest.
C. Accrued interest pertains only to short-term debt.
D. Accrued interest pertains only to intermediate and long-term
debt.
E. Accrued interest is not a cash expense until it is paid.
8. The demand curve shows the relationship between
A. price and the quantity demanded.
B. consumer tastes and the quantity demanded.
C. price and production costs.
D. money income and quantity demanded.
E. None of the above
9. Farmer Jones wants to plant a crop with a 5-in spacing in 32-inch
rows. If there are 100,000 seeds in a bushel, how many bushels will
he seed per acre. (Hint: 43,560 sq. ft. in an acre.)
A. 0.39
B. 0.52
C. 1.07
D. 1.91
E. None of the above
10. An increase in total operating costs of $20 per acre will increase the
breakeven price of the crop by how much if the yield is 100 units per
acre?
A. $0.02 per unit
B. $0.20 per unit
C. $2.00 per unit
D. $20.00 per unit
E. None of the above
11. If high oil corn has the same production cost per acre as regular corn
but can be sold for 15 cents per bushel more, what yield of high oil
corn is needed to equal 130 bushels of regular corn at $2.00 per
bushel?
A. 109.1 bushels
B. 113.6 bushels
C. 117.5 bushels
D. 120.9 bushels
E. None of the above
12. For tax year 2001, the social security wage base was
A. $73,300
B. $76,200
C. $80,400
D. $84,900
E. None of the above
13. A farmer purchases 600-pound feeder steers for 95 cents per pound and
plans to sell the steers at 850 pounds. The farmer estimates the
total cost of gain to be 50 cents per pound. The nearest breakeven
price when the steers are sold at 850 pounds is
A. 64.75 cents/pound
B. 73.75 cents/pound
C. 80.00 cents/pound
D. 81.76 cents/pound
E. None of the above
14. How many total acres are included in the "SE 1/4 of Section 15 and the
S 1/2 of the NE 1/4 of Section 15, Twp. 10N, R4W of the 5th Principle
Meridian"?
A. 80 acres
B. 120 acres
C. 160 acres
D. 240 acres
E. None of the above
15.How much perimeter fence would be required to completely enclose the
parcel of land described in the question above?
A. 1.5 miles
B. 2.0 miles
C. 2.5 miles
D. 3.0 mile
E. None of the above
16. A township is six miles square and includes
A. 6 sections.
B. 36 sections.
C. 40 sections.
D. 160 sections.
E. None of the above
17. Farmer Jones has more current assets than current liabilities. Her
current ratio is
A. negative.
B. zero.
C. between 0 and 1.
D. greater than 1.
E. None of the above
18. The present value formula for estimating land prices (PV = annual net
returns ö discount rate) assumes
A. future prices and yields can be estimated accurately.
B. the discount rate is appropriate.
C. income will continue to infinity.
D. net income will not trend up or down.
E. All of the above
19. A soybean producer decides to store his soybeans in the local elevator
for 4 months. The price at harvest is $4.40 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. $4.50
B. $4.65
C. $4.75
D. $5.02
E. None of the above
20. The term "exchange rate" refers to
A. how much of one currency is needed to acquire a unit of another
currency.
B. how much principal is reduced by payments on an amortized loan.
C. the ratio between current and long-term debt.
D. the difference in value between a dollar today and a dollar one
year from today.
E. None of the above
21. A cord is a stack of wood measuring
A. 2' x 4' x 4'
B. 4' x 4' x 4'
C. 4' x 4' x 8'
D. 4' x 8' x 8'
E. None of the above
22. Farmer Brown has a debt-to-asset ratio of 47%. His debt-to-equity
ratio must be
A. negative.
B. 53%.
C. Less than 100%.
D. Greater than 100%.
E. None of the above
23. The "rule of 72" says to divide 72 by the annual interest rate to
estimate the number of years needed for an initial investment earning
that rate to double. How long would it take for $1 earning 6% a year
to grow to $4?
A. 12 years
B. 24 years
C. 36 years
D. 48 years
E. None of the above
24. For an amortized loan, the amount of interest in the first payment
will be
A. more than the amount of the principal.
B. less than the amount of the principal.
C. equal to the amount of the principal.
D. dependent on the length of the loan.
E. None of the above
25. How many pounds of 48% protein soybean meal must be mixed with 7%
protein corn to make a ton of 14% protein feed?
A. 341 pounds
B. 390 pounds
C. 439 pounds
D. 487 pounds
E. None of the above
26. A farmer began the year with an outstanding balance of $50,000 on his
operating loan and accrued interest of $500 on the loan. The loan
carries an interest rate of 8% on outstanding principal. Nine months
later he makes a $3,000 payment on the loan. After this payment he
will have an accrued interest of
A. $0.
B. $500.
C. $1,000.
D. $2,000.
E. None of the above
27. Farmer Johnson has a rate of return on assets of 5% when assets are
valued using the cost method, and a rate of return on assets of 9%
when the assets are valued using market valuation. This means that
the value of assets using the cost method
A. is greater than the market valuation.
B. is equal to the market valuation.
C. is less than the market valuation.
D. produces a higher return to farm assets.
E. None of the above
28. A farmer has a debt/worth ratio of 1:2. The current liabilities total
$30,000 and the non-current liabilities total $90,000. What is the
value of the assets?
A. $420,000
B. $360,000
C. $240,000
D. $120,000
E. None of the above
29. A cattle feeding operation has sales of $730,000, feed purchases of
$300,000, other costs of $400,000, an opening inventory of $380,000,
and a closing inventory of $400,000. What is the net farm income for
this operation on an accrual basis?
A. $10,000
B. $30,000
C. $50,000
D. $730,000
E. None of the above
30. If corn silage as fed contains 60% moisture and 2.7% protein, the dry
matter would be what percent protein?
A. 2.80
B. 3.08
C. 6.75
D. 7.25
E. None of the above
31. On April 1, 2001, Sue borrowed $25,000 to plant soybeans. On November
1, 2001, she repaid the $25,000 along with $1,348.96 interest. What
annual interest rate did she pay?
A. 8.50%
B. 9.25%
C. 9.75%
D. 10.41%
E. None of the above
32. A $50,000 loan amortized at 8% interest for 20 years yields annual
payments of $5,092.61. How much of the first year's payment is
principal?
A. $1,092.61
B. $1,700.00
C. $2,592.61
D. $4,000.00
E. None of the above
33. For the above loan of $50,000, if the 20th and final payment includes
$377.23 of interest, what was the outstanding principal balance after
the 19th payment?
A. $5,688.07
B. $4,715.38
C. $4,622.77
D. $377.23
E. None of the above
34. For the above loan of $50,000, how much total interest is paid over
the life of the loan?
A. $101,852.20
B. $51,852.20
C. $43,000.00
D. $7,544.60
E. None of the above
35. A feedlot operator purchases a pen of 100 feeder steers with an
average weight of 763 pounds and sells them at an average weight of
1081 pounds. Total feed cost for the pen is $16,634. Feed cost per
pound of gain is equal to
A. $0.440
B. $0.523
C. $0.649
D. $0.720
E. None of the above
36. A producer sells 10 feeder steers for $80/cwt. The average weight per
steer is 800 pounds. There is a 3% sales commission and yardage fees
of $2.50 per head. The net amount received for the pen of steers
would be
A. $6,027.60
B. $6,028.36
C. $6,183.00
D. $6,958.80
E. None of the above
37. How many gallons of water must be mixed with a pint of herbicide to
make a 1% solution?
A. 12.375
B. 12.500
C. 25.000
D. 99.000
E. None of the above
38. A metric ton weighs
A. 1876.3 pounds
B. 2000.0 pounds
C. 2204.6 pounds
D. 2520.3 pounds
E. None of the above
39. A hectare equals
A. 0.40 acres
B. 1.74 acres
C. 2.47 acres
D. 5.05 acres
E. None of the above
40. Which is heavier, a bushel of shelled corn or a bushel of soybeans?
A. Shelled corn
B. Soybeans
C. They weigh the same.
D. Depends on whether measured in pounds or kilograms.
E. None of the above
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2002 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, 2002:
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:
__________________________________ ___________________________________
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Total _________________ Total __________________
Non-current Assets: Non-current Liabilities:
__________________________________ ___________________________________
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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, 2002, 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 equity ratio was:
A. 0.499
B. 0.554
C. 0.780
D. 1.243
E. None of the above
PROBLEM II -- Enterprise Budget
Use the following dairy cow budget to answer Questions 8 through 16.
_________________________________________________________________
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 1475.00
Dairy heifer 520.00
Dairy repl. heifer 273.00
Total 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
_________________________________________________________________
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
11. What price per ton is paid for 16% dairy ration?
A. $8.70
B. $98.67
C. $174.00
D. $858.43
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
$75 each, what will be total receipts per cow?
A. $2,757.34
B. $2,779.54
C. $2,783.75
D. $2,791.55
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 items.
On February 15, 2001, Dave bought a new tractor. Dave paid $30,000 "down"
and financed the remaining $15,000 over 3 years at 8% interest.
17. The tractor is
A. 3-year property
B. 5-year property
C. 7-year property
D. 10-year property
E. None of the above
18. If Dave does not expense any of the cost of the tractor, then 2001
depreciation will be (use regular MACRS and mid-year convention)
A. $1,607.10
B. $2,250.00
C. $3,214.20
D. $4,821.30
E. None of the above
19. If Dave expenses none of the tractor cost and uses the mid-quarter
convention and regular MACRS, then 2001 depreciation will be
A. $2,812.50
B. $3,937.50
C. $5,625.00
D. $8,437.50
E. None of the above
20. If Dave expenses the maximum allowable on the tractor and uses regular
MACRS, then 2001 depreciation will be
A. $0
B. $1,071.40
C. $2,249.94
D. $3,214.20
E. None of the above
21. If Dave expenses the maximum and uses the mid-year convention and
straight line depreciation over the alternate MACRS life, his 2001
depreciation will be
A. $0
B. $500
C. $750
D. $1,050
E. None of the above
22. Under MACRS, a crop irrigation well is classified as
A. 10-year property
B. 15-year property
C. 20-year property
D. not depreciable
E. None of the above
PROBLEM IV -- Supply and Demand
2002 District FFA Farm Management Graph for Exam
The above graph represents supply of beef for import into the U.S. (SF) the
current supply of beef produced in the U.S. (SUS), the total supply of beef
in the U.S. (ST), the foreign demand for U.S. beef (DF), the domestic demand
for U.S. beef (DUS), and the total demand for U.S. beef (DT).
23. What is the market equilibrium price of beef 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 beef 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 beef will be exported from
the U.S.?
A. Q1
B. Q2
C. Q3
D. Q4
E. Q5
26. At what price would beef imports equal beef exports?
A. P1
B. P2
C. P3
D. P4
E. None of the above
For questions 27 and 28, assume an outbreak of foot and mouth disease in
the U.S. causes an end to U.S. beef exports.
27. The change will cause the market equilibrium price to
A. increase.
B. decrease.
C. not change.
D. None of the above
28. After the FMD outbreak, U.S. beef imports should
A. increase.
B. decrease.
C. stay the same.
D. None of the above
PROBLEM V - Marketing
On December 1, a farmer has 5,000 bushels of corn in his bin when the local
elevator is bidding $2.02 for corn. He sells it on February 15. Ignore
commissions, storage cost, and interest.
December 1 quotes: February 15 quotes:
March futures price = $2.20 March futures price = $2.15
Expected basis = $0.10 under the board Basis=$0.05 under the board
Strike ---- Premiums ---- ---- Premiums ----
price Call Put Call Put
$1.80 $0.42 $0.01 $0.38 $0.01
$1.90 $0.32 $0.01 $0.28 $0.01
$2.00 $0.23 $0.01 $0.18 $0.01
$2.10 $0.15 $0.02 $0.09 $0.02
$2.20 $0.09 $0.08 $0.02 $0.05
$2.30 $0.04 $0.16 $0.01 $0.13
29. What is the local cash price of corn on February 15?
A. $2.10
B. $2.15
C. $2.20
D. $2.25
E. None of the above
30. If the farmer sold a futures contract on December 1 and bought back the
contract on February 15, what would be the realized price per bushel
(cash + net on futures) for the corn?
A. $2.10
B. $2.15
C. $2.20
D. $2.25
E. None of the above
31. If the farmer bought a $2.20 Put on December 1 and sold the Put on
February 15, what would be the realized price per bushel (cash + net on
options) for his corn?
A. $2.07
B. $2.13
C. $2.17
D. $2.23
E. None of the above
32. If the farmer bought a $2.20 Put and sold a $2.20 Call on December 1,
and sold the Put and bought back the Call on February 15, what would be
the realized price per bushel (cash + net on options) for his corn?
A. $2.10
B. $2.14
C. $2.18
D. $2.21
E. None of the above
33. Given all the information above, which of the following actions taken
on December 1 turned out to be the most profitable?
A. Selling a futures contract.
B. Buying a $2.20 Put option.
C. Buying a $2.20 Put and selling a $2.20 Call.
D. Selling the corn on December 1.
E. Taking no market action.
PROBLEM VI - Alternative Investment
Rich Farmer has 2,000 bushels of corn stored on his farm. He can sell it
at the local elevator for $2.00 per bushel. It will cost him $.10 per
bushel to haul it to the elevator. Rich is considering feeding the corn to
some hogs. He can buy 40-pound feeder pigs for $1.10 per pound delivered
to his farm.
Rich will grind and mix his own hog feed. His ration consists of 80 pounds
of corn and 20 pounds of commercial feed additive. He can get the
commercial additive delivered for $180 per ton.
Rich plans to market the hogs at 260 pounds. He thinks it will take 120
days of feeding to reach that weight. He expects a 3.2 to 1 feed
conversion ratio.
34. How many pounds of corn does Rich have? (Hint: Corn weighs 56 pounds
per bushel.)
A. 56,000
B. 67,200
C. 84,000
D. 112,000
E. None of the above
35. How much commercial feed additive will he need to buy to mix with the
2,000 bushels of corn?
A. 16,800 pounds or 8.4 tons
B. 21,000 pounds or 10.5 tons
C. 28,000 pounds or 14 tons
D. 50,000 pounds or 25 tons
E. None of the above
36. Given the limited corn supply, how many pounds of gain (at 3.2 to 1)
can Rich get if he feeds an 80-20 ration?
A. 29,474 pounds
B. 35,000 pounds
C. 41,176 pounds
D. 43,750 pounds
E. None of the above
37. How many feeder pigs should Rich buy to feed all his corn (assuming a
zero death loss)?
A. 166
B. 174
C. 183
D. 191
E. 198
Rich decides to feed the pigs. He buys 185 head which average 44 pounds
each. Five die and he sells 180 which average 259 pounds. He has 180
bushels of corn left.
38. What feed conversion did Rich actually get?
A. 3.18 pounds of feed per pound of gain
B. 3.22 pounds of feed per pound of gain
C. 3.31 pounds of feed per pound of gain
D. 3.42 pounds of feed per pound of gain
E. None of the above
39. What is the total feed cost for these pigs?
A. $5,057.80
B. $5,575.20
C. $5,751.20
D. $5,933.20
E. None of the above
40. If Rich's costs (other than feed and pigs) were $25 per pig purchased,
what was Rich's breakeven selling price?
A. $41.04 per cwt.
B. $41.46 per cwt.
C. $41.69 per cwt.
D. $42.06 per cwt.
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
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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
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Depreciation formula: Basis divided by N times number from above
table.
ANNUAL FRACTIONS FOR 27 1/2 YEAR PROPERTY, REGULAR MACRS
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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
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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
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Depreciation formula: Basis divided by 39 divided by 12 times number
from above table.
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2002 DISTRICT FFA FARM MANAGEMENT CONTEST
KEY
Multiple Choice
1. B 11. D 21. C 31. B
2. D 12. C 22. C 32. A
3. D 13. D 23. B 33. B
4. C 14. D 24. E 34. B
5. D 15. C 25. A 35. B
6. D 16. B 26. B 36. C
7. E 17. D 27. A 37. A
8. A 18. E 28. B 38. C
9. A 19. B 29. C 39. C
10. B 20. A 30. C 40. B
Problems
1. B 11. C 21. D 31. A
2. A 12. A 22. B 32. B
3. C 13. C 23. C 33. A
4. B 14. B 24. C 34. D
5. A 15. B 25. B 35. C
6. D 16. D 26. D 36. D
7. D 17. C 27. B 37. E
8. C 18. D 28. B 38. C
9. D 19. D 29. A 39. C
10. C 20. C 30. B 40. B