2009 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. Answers have
been rounded.
1. You must use the mid-quarter convention of depreciation if more than
what percent of 3-, 5-, 7-, 10-, 15-, and 20-year property is
acquired in the fourth quarter?
A. 33%
B. 40%
C. 50%
D. 65%
E. None of the above
2. The maximum annual contribution to an IRA is $5,000 per person for
someone under age 50 and ___________ for someone age 50 or older.
A. $5,000
B. $6,000
C. $7,500
D. $10,000
E. None of the above
3. By contributing the maximum amount to a Roth IRA, a 40-year-old
farmer will reduce his taxable income by
A. $0.
B. $2,000.
C. $3,000.
D. $3,500.
E. None of the above
4. A farmer sold his 5000-bushel corn crop at several different times during
the year. He sold 1000 bushels at $3.00, 2000 bushels at $3.50, and 2000
bushels at $4.00. What was his average price per bushel?
A. $3.00
B. $3.50
C. $3.60
D. $3.67
E. None of the above
5. You buy seed beans having 2585 seeds per pound. The directions state
to drill at the rate of 3 beans per foot with a 7-inch spaced drill.
How many 50-pound bags will you need for a 30-acre field?
A. 25 bags
B. 34 1/2 bags
C. 52 bags
D. 61 1/2 bags
E. None of the above
6. The self-employment tax rate for Medicare is
A. 1.45%
B. 2.90%
C. 5.30%
D. 7.65%
E. None of the above
7. Herbicide is usually applied to weeds and grasses around the
farmstead as a 2% solution. How many ounces of herbicide should be
added to a 2 1/2 gallon sprayer to make a 2% solution?
A. 2.0 ounces
B. 5.0 ounces
C. 6.4 ounces
D. 10.3 ounces
E. None of the above
8. As a cattle buyer you buy 50 choice steers weighing 1,210 pounds on
average. If they yield 62%, how much would the average carcass
weigh?
A. 694.4 pounds
B. 712.3 pounds
C. 750.2 pounds
D. 806.5 pounds
E. None of the above
9. A farmer obtains 4-ton hay yields and 12-ton corn silage yields. His
cash costs of production are $30 per ton of hay and $14 per ton of
corn silage. One pound of hay will substitute for 2 pounds of corn
silage and not affect rate of gain. What proportion of hay and
silage should this farmer raise for cattle feed?
A. Grow 2 acres of corn silage for each acre of hay.
B. Grow 3 acres of hay for each acre of corn silage.
C. Grow only corn silage.
D. Grow only hay.
E. Not enough information given.
10. What is the maximum Section 179 expensing deduction for 2008?
A. $10,000
B. $25,000
C. $125,000
D. $250,000
E. None of the above
11. Marginal revenue and marginal cost are useful concepts in determining
the profit maximizing output level. Profit will be at its maximum
level
A. where marginal revenue is at its maximum level and marginal
cost is 0.
B. where marginal revenue is 0 and marginal cost is at its
maximum.
C. where marginal revenue equals marginal cost.
D. where marginal revenue is at its minimum and marginal cost is
at its maximum.
12. If both demand and supply increased equally for an agricultural
product, what will be the results on the quantity of the product sold
and the price received?
A. The same quantity will be sold at the same price.
B. An increased quantity will be sold at a lower price.
C. An increased quantity will be sold at a higher price.
D. An increased quantity will be sold at the same price.
E. None of the above
13. When a farmer borrows money to purchase land, he usually must offer
the title to the property as security until the debt has been repaid.
This credit instrument is commonly referred to as a
A. sales contract.
B. promissory note.
C. mortgage.
D. check.
E. None of the above
14. A decline in the value of total farm assets will
A. increase the rate of return to equity.
B. increase the rate of return to assets.
C. increase the capital turnover ratio.
D. all of the above.
E. None of the above
15. The increase in wheat yield becomes smaller for each additional 10
pounds of nitrogen fertilizer applied after 30 pounds per acre have
been applied. This is an example of
A. increasing marginal returns.
B. unprofitable use of fertilizer.
C. diminishing marginal physical product.
D. stage 3 of production.
E. None of the above
16. Which of the following causes a shift in the demand for beef?
A. A decrease in cattle numbers
B. Increased cost of producing beef
C. Increased number of cattle producers
D. Increased income of consumers
E. All of the above
17. 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
18. The total tax deduction for conservation expenses in any tax year is
limited to ____% ofyour gross income from farming for the year.
A. 25%
B. 50%
C. 75%
D. 100%
E. None of the above
19. If corn silage as fed contains 65% moisture and 2.5% protein, the dry
matter would be what percent protein?
A. 2.50
B. 5.71
C. 6.86
D. 7.14
E. None of the above
20. 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
21. 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
22. 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 7% 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
23. 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 the lender devalues the land by 15%?
A. .64
B. .88
C. 1.14
D. 1.22
E. None of the above
24. How many total acres are included in "SW 1/4 of NE 1/4 and S 1/2 of NW
1/4 of Section 15, Twp. 10 N, R 4W of the 5th Principle Meridian"?
A. 80 acres
B. 120 acres
C. 160 acres
D. 320 acres
E. None of the above
25. How much perimeter fence would be required to completely enclose the
parcel of land described in the question above?
A. 1.0 mile
B. 1.5 miles
C. 2.0 miles
D. 2.5 miles
E. None of the above
26. Economists use elasticities to relate the percentage change in one
variable to the percentage change in another variable. The cross-price
elasticity of demand estimates the impact on the demand for a good with
respect to the change in the price of another good. A positive cross-
price elasticity indicates the two goods are
A. substitutes.
B. complements.
C. inferior.
D. luxuries.
E. None of the above
27. The own-price elasticity of demand estimates the impact on the quantity
of a good demanded by a change in the price of the good. Normally, one
would expect the own-price elasticity of demand to be
A. positive.
B. negative.
C. zero.
D. None of the above
28. The income elasticity of demand estimates the impact of a change in
income on the demand for a good. For normal goods, the income elasticity
of demand is
A. positive.
B. negative.
C. zero.
D. None of the above
29. Corn has an expected yield of 140 bushels per acre and a production cost
of $250.00 per acre. Expected market prices are $3.50 per bushel for
corn and $7.00 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. 42.3 bushels
B. 48.6 bushels
C. 50.0 bushels
D. 53.0 bushels
E. None of the above
30. How many bushels of corn are in a metric tonne?
A. 33.3
B. 35.7
C. 36.7
D. 39.4
E. None of the above
31. A soybean producer decides to store his soybeans in the local elevator
for 4 months. The price at harvest is $8.00 per bushel and the elevator
charges 2 cents per bushel per month for storage plus a 5 cent per bushel
handling charge. He has 4,000 bushels to sell and must borrow $32,000 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. $8.13
B. $8.21
C. $8.30
D. $8.34
E. None of the above
32. How many pounds of 48% protein supplement must be mixed with 8% protein
corn to make a ton of 16% protein feed?
A. 300 pounds
B. 400 pounds
C. 550 pounds
D. 600 pounds
E. None of the above
33. 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
34. On March 1, 2008, Kate borrowed $25,000 to plant corn. On November 1,
2008, she repaid the $25,000 along with $1,541.67 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
35. A feedlot operator buys feeder steers, finishes them, and sells them.
The operator estimates that finished steers will sell for $85 per cwt.
and that it will cost $280 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. $70.25/cwt.
B. $76.14/cwt.
C. $80.00/cwt.
D. $87.33/cwt.
E. None of the above
36. A part-time farmer has 160 acres of land, 40 cows and can only work 500
hours per year on his farm. An acre of corn requires 3 hours of labor and
yields 80 bushels. An acre of beans take 2 hours and yields 30 bushels.
Each cow needs 10 hours of labor, 3 acres of land, and consumes 16
bushels of corn. What is the maximum number of acres of soybeans he can
grow if the farmer keeps 40 cows and does not buy any corn?
A. 28
B. 32
C. 36
D. 64
E. None of the above
37. 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
38. During the year, a farmer pays $1,800 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 30%. What is his
after-tax cash cost of using the tractor for the year?
A. $ 750
B. $1,900
C. $2,050
D. $3,600
E. None of the above
39. A written agreement by which an owner of property transfers title to
someone for the benefit of beneficiaries is a
A. trust.
B. partnership.
C. corporation.
D. sole proprietorship.
E. None of the above
40. If the price of a September Put option is higher today than yesterday,
then one would expect that the price of a September futures contract is
A. higher today than yesterday.
B. lower today than yesterday.
C. unchanged from yesterday.
D. either up or down. There is no relationship
between futures prices and prices of options
E. None of the above
2009 DISTRICT 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. Answers have been rounded.
PROBLEM I - Balance Sheet
Using the information below, complete the net worth statement for January 1,
2009:
Land . . . . . . . . . . . . . . . . . . . . . . . . $550,000
Autos . . . . . . . . . . . . . . . . . . . . . . . 22,000
Machinery and equipment. . . . . . . . . . . . . . . 185,000
Cows . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Calves . . . . . . . . . . . . . . . . . . . . . . . 35,000
Accounts payable . . . . . . . . . . . . . . . . . . 16,500
Soybeans . . . . . . . . . . . . . . . . . . . . . . 18,400
Sows and boars . . . . . . . . . . . . . . . . . . . 30,000
Market hogs . . . . . . . . . . . . . . . . . . . . 47,500
Checking and savings . . . . . . . . . . . . . . . . 9,415
House. . . . . . . . . . . . . . . . . . . . . . . . 96,000
Hog buildings . . . . . . . . . . . . . . . . . . . 45,000
Feed and hay . . . . . . . . . . . . . . . . . . . . 14,250
Accounts receivable. . . . . . . . . . . . . . . . . 15,500
Accrued interest owed. . . . . . . . . . . . . . . . 18,750
Accrued taxes owed . . . . . . . . . . . . . . . . . 17,400
30-year land loan balance is $320,000.
$16,000 plus interest is due March 1 of each year.
7-year building loan balance is $44,000.
$11,000 plus interest is due August 31 of each year.
20-year home loan balance is $78,016.
$8,500 plus interest is due each December 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, 2009, was:
A. $124,565
B. $140,065
C. $162,065
D. $192,650
E. None of the above
2. The total value of non-current assets was:
A. $892,000
B. $958,000
C. $966,000
D. $988,000
E. None of the above
3. The total value of current liabilities was:
A. $52,650
B. $61,150
C. $63,650
D. $79,650
E. None of the above
4. The total value of non-current liabilities was:
A. $406,516
B. $422,516
C. $433,516
D. $442,016
E. None of the above
5. The net worth was:
A. $621,527
B. $633,399
C. $660,399
D. $668,903
E. None of the above
6. The current ratio was:
A. 0.629
B. 0.891
C. 1.589
D. 2.280
E. None of the above
7. The debt to equity ratio was:
A. 0.439
B. 0.781
C. 1.053
D. 1.280
E. None of the above
PROBLEM II -- Enterprise Budget
Use the following cow-calf budget to answer Questions 8 through 16.
COW-CALF, spring calving, warm season pasture; cost/return per cow; ranch
size unit; winter DM is 25% non-legume hay
______________________________________________________________________________
Operating Inputs Units Price Qty. Value Your Value
Non-legume hay Lbs. 0.050 964.000 $48.20 __________
41-45% protein sup. Lbs. 0.130 299.000 38.87 __________
19-20% pro. feed Lbs. 0.080 367.000 29.36 __________
Salt & minerals Lbs. 0.100 30.000 3.00 __________
Summer pasture AUMs 8.400 8.000 67.20 __________
Winter dry pasture AUMs 8.400 3.550 29.82 __________
Vet. service Head 14.650 1.000 14.65 __________
Vet med, lstk supplies Head 2.800 1.000 2.80 __________
Marketing expense Cwt. 1.750 4.320 7.56 __________
Personal taxes Head 5.300 1.000 5.30 __________
Herd bulls Cwt. 85.000 0.122 10.37 __________
Hauling Cwt. 0.500 4.320 2.16 __________
Annual operating cap. Dol. 0.107 150.000 16.05 __________
Machinery labor Hour 6.000 4.574 27.42 __________
Equipment labor Hour 6.000 0.050 0.30 __________
Livestock labor Hour 6.000 5.330 31.98 __________
Mach fuel, lube, repair Dol. 27.30 __________
Equip fuel, lube, repair Dol. 1.18 __________
Total operating costs $363.52 __________
Fixed costs
Machinery: Amount Value
Interest at 10.675% 54.58 5.83 __________
Depr., taxes, insurance 10.69 __________
Equipment:
Interest at 10.675% 13.43 1.43 __________
Depr., taxes, insurance 2.59 __________
Livestock
Beef cow 720.00 _______
Bull 40.50 _______
Beef heifer 60.00 _______
Horse 3.40 _______
Interest at 10.675% 823.90 87.95 __________
Depr., taxes, insurance 10.47 __________
Total fixed costs 118.96 __________
Production Units Price Quantity Value
Steer calves (400-500#) Cwt. 87.00 1.92 167.04 __________
Heifer calves (400-500#) Cwt. 79.00 1.27 100.33 __________
Commercial cows Cwt. 41.00 0.87 35.67 __________
Aged bulls Cwt. 51.00 0.14 7.14 __________
Heifers (600-700#) Cwt. 72.00 0.12 8.64 __________
Total receipts 318.82 __________
Returns above total operating costs -44.70 __________
Returns above all specified costs -163.66 __________
______________________________________________________________________________
8. Total operating cost per cow is:
A. $16.05
B. $118.96
C. $318.82
D. $363.52
E. None of the above
9. The return above total operating cost per cow is:
A. -$163.66
B. -$44.70
C. $318.82
D. $363.52
E. None of the above
10. How many hours of labor are budgeted per cow?
A. 6.000
B. 9.954
C. 18.000
D. 59.700
E. None of the above
11. What is the total budgeted interest cost per cow?
A. $68.01
B. $87.95
C. $95.21
D. $111.26
E. None of the above
12. What price per ton is paid for hay?
A. $5.00
B. $48.20
C. $50.00
D. $100.00
E. None of the above
13. What are the per cow costs directly attributed to feed?
A. $97.02
B. $119.43
C. $168.25
D. $216.45
E. None of the above
14. How many pounds of cattle are sold per cow?
A. 319
B. 432
C. 450
D. 500
E. None of the above
15. If the price of all cattle sold increases by 20% and the price of hay
drops by 20%, what will be the per cow returns above total operating
costs (ignore any change in operating capital expense)?
A. $28.70
B. $55.97
C. $62.87
D. $107.68
E. None of the above
16. What will be the returns above all costs if you include the changes from
question 15 and pay only $60 for pasture rent?
A. -$99.81
B. -$53.24
C. -$13.27
D. $188.10
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 March 1, 2008, Mary bought a new planter. Mary traded her old planter
which had a remaining book value of $3,025. Mary paid $10,000 "down" and
financed the remaining $15,000 over 3 years at 8% interest. She elected to
roll the remaining basis of her old planter into the new one.
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 Mary does not expense any of the cost of the planter, then 2008
depreciation will be (use regular MACRS and mid-year convention)
A. $1,395.50
B. $2,500.00
C. $2,678.50
D. $3,002.60
E. None of the above
19. If Mary expenses $10,000 of the planter cost and uses the mid-quarter
convention and regular MACRS, then 2008 depreciation will be
A. $567.19
B. $2,414.09
C. $3,379.69
D. $5,254.69
E. None of the above
20. If Mary expenses the maximum allowable on the planter and uses regular
MACRS with the mid-year convention, then 1/1/09 remaining book value
will be
A. $0
B. $324.10
C. $2,700.90
D. $4,276.18
E. None of the above
21. If Mary does not claim an expense deduction and uses the mid-quarter
convention and straight line depreciation over the alternate MACRS
life, her 2008 depreciation will be
A. $380.50
B. $1,000.00
C. $1,401.25
D. $2,452.19
E. None of the above
22. Under MACRS, a pickup truck 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 is in separate file.)
The above graph represents supply of apples for import into the U.S.
(SF) the supply of apples produced in the U.S. (SUS), the total supply of
apples in the U.S. (ST), the foreign demand for U.S. apples (DF), the
domestic demand for apples (DUS), and the total demand for apples (DT) in
the U.S.
23. What is the market equilibrium price of apples in the U.S.?
A. P1
B. P2
C. P3
D. P4
E. None of the above
24. At the market equilibrium price, how many apples will be exported
from the U.S.?
A. Q1
B. Q2
C. Q3
D. Q4
E. Q5
25. At the market equilibrium price, how many apples will be
imported into the U.S.?
A. Q1
B. Q2
C. Q3
D. Q4
E. Q5
26. At what price would apple imports equal apple exports?
A. P1
B. P2
C. P3
D. P4
E. None of the above
For questions 27 and 28, assume the value of the U.S. dollar strengthens
with respect to the currency of our major apple trading partners.
27. The change will cause the U.S. apple imports to
A. increase.
B. decrease.
C. not change.
D. None of the above
28. After the dollar strengthens, U.S. equilibrium price of apples
should
A. increase.
B. decrease.
C. stay the same.
D. None of the above
PROBLEM V - Marketing
In January, a farmer has 5,000 bushels of corn in the bin. He sells the
corn on April 25. Ignore commissions, storage cost, and interest.
January 5 quotes: April 25 quotes:
May futures price = $3.60 May futures price = $3.65
Expected basis = $0.15 under the board Basis = $0.15 under the board
Strike -- May Premiums -- -- May Premiums --
price Call Put Call Put
$3.50 $0.43 $0.07 $0.33 $0.01
$3.60 $0.33 $0.14 $0.24 $0.03
$3.70 $0.24 $0.22 $0.16 $0.05
$3.80 $0.16 $0.31 $0.09 $0.11
$3.90 $0.09 $0.41 $0.04 $0.20
29. What is the cash price of corn on April 25?
A. $3.35
B. $3.40
C. $3.45
D. $3.50
E. None of the above
30. If the farmer sold one 5,000-bushel futures contract on January 5
and bought back the contract on April 25, what would be the
realized price per bushel (cash + net on futures) for his corn?
A. $3.45
B. $3.69
C. $3.71
D. $3.81
E. None of the above
31. If the farmer sold a $3.50 Call on January 5 and bought it back on
April 25, what would be the realized price per bushel (cash + net
on options) for his corn?
A. $3.40
B. $3.50
C. $3.60
D. $3.70
E. None of the above
32. If the farmer bought one 5,000-bushel $3.70 Put on January 5 and
sold the Put on April 25, what would be the realized price per
bushel (cash + net on options) for his corn?
A. $3.33
B. $3.35
C. $3.45
D. $3.48
E. None of the above
33. If the farmer bought a 5,000-bushel $3.70 Put and sold a $3.70 Call
on January 5, and sold the Put and bought back the Call on April 25,
what would be the realized price per bushel (cash + net on options)
for his corn?
A. $3.24
B. $3.29
C. $3.41
D. $3.56
E. None of the above
34. If the farmer sold his corn on January 5 for $3.70 per bushel and
bought one 5,000-bushel $3.70 May call, then sold the Call on April 25,
his realized price per bushel (cash + net on options) would be:
A. $3.60
B. $3.62
C. $3.69
D. $3.81
E. None of the above
PROBLEM VI -- Substitution
Hogs grow best when grain and protein are mixed to obtain the proper
protein level. However, they will grow on most any mix of corn and
protein. The following rations will all produce about 1050 pounds of
gain when fed to a pen of ten, 155-pound pigs.
Lbs. protein
Ration Lbs. corn supplement
A 3500 100
B 2990 300
C 2560 500
D 2200 700
E 1900 900
35. If corn costs 7cents/pound and supplement costs 14 cents/pound, what
is the least cost ration?
A. Ration A
B. Ration B
C. Ration C
D. Ration D
E. Ration E
36. If corn costs 5 cents/pound and supplement costs 12 cents/pound, what
is the least cost ration?
A. Ration A
B. Ration B
C. Ration C
D. Ration D
E. Ration E
37. Between Ration B and C, it takes __________ pounds of corn to
replace a pound of supplement.
A. 1.80
B. 2.15
C. 3.60
D. 4.30
E. None of the above
PROBLEM VII - Exchange Rates
Canadian Mexican Japanese Chinese European
Dollars Pesos Yen Yuan Euros
per US $ per US $ per US $ per US $ per US $
Jan 00 1.45 9.49 105.3 8.28 0.987
Jan 05 1.22 11.26 103.3 8.28 0.762
Jan 06 1.16 10.54 115.5 8.07 0.825
Jan 07 1.18 10.96 120.5 7.79 0.770
Jan 08 1.01 10.91 107.8 7.24 0.679
Jan 09 1.22 13.88 90.1 6.84 0.7551
Illinois Kansas Iowa Nebraska
Corn Wheat Pork Beef
$/bu. $/bu. $/cwt. $/cwt.
Jan 00 1.95 2.51 57.65 114.92
Jan 05 1.86 3.43 73.98 148.40
Jan 06 1.98 3.52 61.50 155.19
Jan 07 3.66 4.53 63.70 149.96
Jan 08 4.55 8.55 56.71 146.41
Jan 09 4.34 5.79 57.50 132.85
38. Valued in Japanese Yen, how much did Nebraska beef prices decrease
from January 2006 to January 2009?
A. 10.0%
B. 14.4%
C. 22.0%
D. 36.4%
E. None of the above
39. Valued in Chinese Yuan, how much did Illinois corn prices increase
from January 2005 to January 2009?
A. 60.5%
B. 92.8%
C. 107.6%
D. 133.3%
E. None of the above
40. Valued in Canadian dollars, how much did Iowa pork prices decline
from January 2005 to January 2009?
A. 1.6%
B. 12.1%
C. 22.3%
D. 45.0%
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
2009 DISTRICT FFA FARM MANAGEMENT CONTEST
Multiple Choice
1. B 11. C 21. D 31. D
2. B 12. D 22. A 32. B
3. A 13. C 23. D 33. D
4. C 14. D 24. B 34. B
5. C 15. C 25. C 35. D
6. B 16. D 26. A 36. B
7. C 17. B 27. B 37. C
8. C 18. A 28. A 38. B
9. C 19. D 29. C 39. A
10. D 20. D 30. D 40. B
Problems
1. B 11. D 21. D 31. C
2. D 12. D 22. B 32. A
3. E 13. D 23. C 33. C
4. A 14. B 24. B 34. B
5. B 15. A 25. A 35. C
6. C 16. B 26. D 36. B
7. B 17. C 27. A 37. B
8. D 18. D 28. B 38. D
9. B 19. C 29. D 39. B
10. B 20. C 30. A 40. C
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