2006 Missouri FFA
Farm Management Contest
2006 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
provided. There is only one correct answer to each question.
1. For tax year 2005, the social security wage base was
A. $84,100
B. $88,500
C. $90,000
D. $92,500
E. None of the above
2. A farmer purchases 550-pound feeder steers for $1.10 per pound
and plans to sell the steers at 750 pounds. The farmer estimates the
total cost of gain to be 45 cents per pound. The nearest breakeven
price when the steers are sold at 750 pounds is
A. 73.75 cents/pound
B. 80.33 cents/pound
C. 81.25 cents/pound
D. 92.67 cents/pound
E. None of the above
3. The two primary methods of describing the size and location of
farmland are rectangular survey and
A. angle and distance.
B. differential elevation.
C. border calibration.
D. metes and bounds.
E. None of the above
4. A producer decides to store his corn in the local elevator for 4
months. The price at harvest is $2.00 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 9% annual interest while he stores the corn. What price
must he receive for his corn to break even and cover his storage and
opportunity costs?
A. $2.00
B. $2.13
C. $2.19
D. $2.31
E. None of the above
5. How many total acres are included in the "S 1/2 of the NW 1/4 and
NE 1/4 of the SW 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
6. 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
7. How many acres are in a section of land?
A. 40 acres
B. 160 acres
C. 640 acres
D. 1,000 acres
E. None of the above
8. An acre equals
A. 0.40 hectares
B. 1.74 hectares
C. 2.47 hectares
D. 5.05 hectares
E. None of the above
9. A decrease in the value of the U.S. dollar relative to the
currency of other countries should result in
A. more costly imports.
B. less costly imports.
C. decreased exports.
D. no effect on imports or exports.
E. None of the above
10. 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
11. 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
12. 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
13. 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
14. How many pounds of 48% protein soybean meal must be mixed with 8%
protein milo to make a ton of 18% protein feed?
A. 311 pounds
B. 421 pounds
C. 487 pounds
D. 500 pounds
E. None of the above
15. A $1 deductible expense (before tax) will cost ______ after tax
if the farmer's marginal tax rate is 35%.
A. $0.35
B. $0.50
C. $0.65
D. $1.00
E. None of the above
16. Farmer Jones wants to plant a crop with a 4-in spacing in 30-inch
rows. If there are 80,000 seeds in a bushel, how many bushels will he
seed per acre.
A. 0.24
B. 0.52
C. 0.65
D. 1.07
E. None of the above
17. 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 10% on outstanding principal. Six 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
18. 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
19. A feedlot operator purchases a pen of 25 feeder steers with an
average weight of 780 pounds and sells them at an average weight of
1081 pounds. Total feed cost for the pen is $3,875. Feed cost per
pound of gain is equal to
A. $0.440
B. $0.515
C. $0.649
D. $0.720
E. None of the above
20. A producer sells 12 feeder steers for $80/cwt. The average
weight per steer is 752 pounds. There is a 2% sales commission and
yardage fees of $2.10 per head. The net amount received for the pen
of steers would be
A. $6,027.60
B. $6,028.36
C. $6,958.80
D. $7,049.62
E. None of the above
21. During the year, a farmer pays $1,850 principal and $500 interest
on a tractor loan. His annual depreciation is $2,000. His deductible
operating expenses (fuel, oil, repairs, etc) associated with operating
the tractor totaled $500. His marginal tax rate is 25%. What is his
after-tax cash cost of using the tractor for the year?
A. $ 750
B. $2,100
C. $2,050
D. $3,600
E. None of the above
22. 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
23. 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
24. 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
25. If the interest rate is 10%, what is the present value of a
dollar to be received by a producer one year from now?
A. $0.826
B. $0.909
C. $1.100
D. $1.210
E. None of the above
26. A farmer has total assets of $500,000 of which land is $300,000.
The farmer's debt:equity ratio is 1.0. What will the farmer's
debt:equity ratio be if his land goes up in value by 10%?
A. .64
B. .89
C. 1.14
D. 1.22
E. None of the above
27. Corn has an expected yield of 120 bushels per acre and has a
production cost of $175.00 per acre. Current 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
dryland corn?
A. 33.3 bushels
B. 35.2 bushels
C. 38.7 bushels
D. 42.0 bushels
E. None of the above
28. 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.
29. A cattle feeder, wishing to use futures markets to hedge the
price of slaughter cattle, would at the time of his cattle purchase
A. buy futures contracts expecting to sell the contracts
when selling cattle.
B. sell futures contracts expecting to sell more contracts
when selling cattle.
C. sell futures contracts expecting to buy contracts when
selling cattle.
D. buy futures contracts expecting to buy more contracts
when selling cattle.
E. All of the above
30. If the total cost of producing 100 units of output is $500 and
the average variable cost is equal to $1, then which of the following
statements is true?
A. Total variable cost of the 100 units is $400.
B. Total fixed cost is equal to $100.
C. Average fixed cost is equal to $4.
D. Average total cost is equal to $4.
E. None of the above is true.
31. Last year, Pat Parker had net farm income of $25,000. Pat had
total business assets of $850,000 and total liabilities of $350,000.
Pat paid $30,000 in interest. Rate of return on equity would be
A. 2.9%
B. 5.0%
C. 6.5%
D. 11.0%
E. None of the above
32. The best measure of a firm's ability to make a short-term loan
payment is
A. debt/asset ratio.
B. solvency ratio.
C. current ratio.
D. leverage ratio.
E. net capital ratio.
33. If the U.S. wheat industry has an inelastic demand curve, a
decrease in the amount of wheat supplied to the market would
A. have no effect on total revenues in the wheat industry.
B. increase the total revenues in the wheat industry.
C. decrease the total revenues in the wheat industry.
D. cause a sharp increase in the demand for wheat.
E. None of the above
34. A trader with a long position in the futures market
A. profits when prices go down, loses when prices go up.
B. profits when prices neither go up nor down.
C. profits when prices go up, loses when prices go down.
D. loses when prices neither go up nor down.
E. cannot lose money.
35. Which of the following is not a supply shifter for farm products?
A. weather
B. new technology
C. government programs
D. consumer income
E. None of the above
36. The Pig Palace Custom Feedlot purchased a group of feeder pigs
weighing 50 pounds each and sold them weighing 260 pounds after
feeding them for 120 days. Each pig ate 630 pounds of feed during the
feeding period. Average daily gain for each pig in the group during
the feeding period was
A. 1.67 pounds per day.
B. 1.75 pounds per day.
C. 2.08 pounds per day.
D. 2.17 pounds per day.
E. None of the above
37. For a trader who is short in the market, a standing order to buy
should the futures price move above a certain level is called a
A. stop order.
B. limit order.
C. permanent block.
D. hedge.
E. None of the above
38. Interest rates go up, causing Jack's annual interest expense to
increase from $12,000 to $14,000. This will cause his rate of return
on equity to
A. increase.
B. decrease.
C. not change.
D. Any of the above
E. None of the above
39. Crop prices decline, causing Marcia's sales income to decline
while leaving her cash operating expenses unchanged. This will cause
her capital turnover to
A. increase.
B. decrease.
C. not change.
D. Any of the above
E. None of the above
40. The ability of larger firms to be more profitable than smaller
firms in the same industry is an example of
A. diminishing returns.
B. imperfect competition.
C. inelastic supply.
D. economies of size.
E. None of the above
--------------------------------------------------------------------------------
2006 MISSOURI FFA FARM MANAGEMENT CONTEST
Problems Section
Choose the best answer and mark the corresponding numbered space on the answer
sheet. Computations may be done in the margins or on the back of the paper.
Each question is worth four (4) points. There is only one correct answer for
each question.
PROBLEM I - Market Value Balance Sheet
Using the information below, complete the net worth statement for January 1, 2006:
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 March 1 of each year.
5-year tractor loan balance is $44,000.
$11,000 plus interest is due August 31 of each year.
20-year home 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, 2006, 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. $163,108
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 following dairy cow budget to answer Questions 8 through 16.
________________________________________________________________
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
________________________________________________________________
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. How many cows are culled per year from a 100-cow herd?
A. 20
B. 39
C. 52
D. 273
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 rise to 50 cents per pound and bull calves
sell for $150 each, what will be total receipts per cow?
A. $2,779.54
B. $2,783.75
C. $2,797.31
D. $2,876.38
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 March 15, 2005, Dave bought a new tractor. Dave traded in a used
tractor which was fully depreciated but had a fair market value of
$7,000. He also paid $10,000 "down" and financed $25,000 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 and does
not claim the special first year allowance, then 2005 depreciation
will be (use regular MACRS and mid-year convention)
A. $1,607.10
B. $2,678.50
C. $3,749.90
D. $4,499.88
E. None of the above
19. What is the maximum amount that Dave can expense on the new
tractor?
A. $7,000
B. $10,000
C. $17,000
D. $35,000
E. None of the above
20. If Dave expenses the maximum allowable on the tractor and uses
the special first year allowance and uses regular MACRS, then 1/1/06
remaining book value will be
A. $0
B. $1,071.40
C. $4,160.75
D. $11,160.75
E. None of the above
21. If Dave neither expenses nor claims the special first year
allowance and uses the mid-year convention and straight line
depreciation over the alternate MACRS life, his 2005 depreciation
will be
A. $750
B. $1,000
C. $1,750
D. $2,100
E. None of the above
22. Under MACRS, a machine shed 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
2006 District FFA Farm Management Graph for Exam
The above graph represents supply of pork for import into the U.S.
(SF) the supply of pork produced in the U.S. (SUS), the total supply
of pork in the U.S. (ST), the foreign demand for U.S. pork (DF), the
domestic demand for pork (DUS), and the total demand for pork (DT) in
the U.S.
23. What is the market equilibrium price of pork 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 pork will be exported
from the U.S.?
A. Q1
B. Q2
C. Q3
D. Q4
E. Q5
25. At the market equilibrium price, how much pork will be imported
into the U.S.?
A. Q1
B. Q2
C. Q3
D. Q4
E. Q5
26. At what price would pork imports equal pork 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 Iowa causes a 98% decrease in foreign demand for U.S. pork.
27. The change will cause the U.S. market equilibrium price to
A. increase.
B. decrease.
C. not change.
D. None of the above
28. After the Iowa FMD outbreak, U.S. pork imports should
A. increase.
B. decrease.
C. stay the same.
D. 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 -- Farm Bill Support
Payments
The loan rate for corn is $1.95 per bushel.
The CCP trigger price for corn is $2.35 per bushel.
The target price for corn is $2.63 per bushel.
For questions 34-40 assume:
Diane finishes her corn harvest on October 28, 2005. She harvested
10,000 bushels and put them in on-farm storage until 2006. The posted
county price for corn is $1.90 on October 28, $1.80 on November 21,
and $1.95 on December 19.
34. If Diane elects to claim her Loan Deficiency Payment on Oct. 28,
she will receive
A. $0
B. $0.05/bushel
C. $0.31/bushel
D. $0.75/bushel
E. None of the above
35. If Diane elects to claim her Loan Deficiency payment on Nov. 21,
she will receive
A. $0
B. $0.15/bushel
C. $0.51/bushel
D. $0.95/bushel
E. None of the above
36. If Diane elects to claim her Loan Deficiency Payment on Nov. 21,
she will receive her LDP payment for
A. 10,000 bushels
B. 85% of 10,000 bushels
C. 78% of 10,000 bushels
D. 85% of her farm's historic base production
E. None of the above
37. Diane will be able to collect a counter-cyclical payment if
A. the posted county price in December averages the loan
rate.
B. the seasonal average price is under the trigger price.
C. the seasonal average price is under the target price.
D. the seasonal average price is above the trigger price.
E. None of the above
38. Diane will receive a counter-cyclical payment on
A. 10,000 bushels.
B. 85% of 10,000 bushels.
C. 78% of 10,000 bushels.
D. 85% of her farm's historic base production.
E. None of the above
39. The fixed payment is the difference between
A. the posted county price and the loan rate.
B. the loan rate and the CCP trigger price.
C. the CCP trigger price and the target price.
D. the loan rate and the target price.
E. None of the above
40. Diane will not receive a fixed payment if
A. the posted county price is above the loan rate.
B. the seasonal average price is above the trigger price.
C. the seasonal average price above the target price.
D. her farm does not have a corn acreage base.
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.
--------------------------------------------------------------------------------
KEY
2006 DISTRICT FFA FARM MANAGEMENT CONTEST
Multiple Choice
1. C 11. C 21. B 31. B
2. D 12. C 22. A 32. C
3. D 13. D 23. C 33. B
4. C 14. E 24. A 34. C
5. B 15. C 25. B 35. D
6. B 16. C 26. B 36. B
7. C 17. A 27. A 37. A
8. A 18. B 28. C 38. B
9. A 19. B 29. C 39. B
10. B 20. D 30. C 40. D
Problems
1. B 11. B 21. C 31. C
2. A 12. A 22. C 32. D
3. C 13. C 23. C 33. A
4. E 14. B 24. B 34. B
5. A 15. B 25. A 35. B
6. D 16. D 26. D 36. A
7. B 17. C 27. B 37. B
8. C 18. C 28. B 38. D
9. D 19. D 29. A 39. C
10. C 20. A 30. D 40. D