1999 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. If high oil corn has the same production cost per acre
as regular corn but can be sold for 25 cents per bushel
more, what yield of high oil corn is needed to equal 125
bushels of regular corn at $2.00 per bushel?
A. 111.1 bushels
B. 113.2 bushels
C. 117.5 bushels
D. 120.7 bushels
E. None of the above
2. A farmer purchases 600-pound feeder steers for 88 cents
per pound and plans to sell the steers at 800 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 800 pounds is
A. 64.75 cents/pound
B. 73.75 cents/pound
C. 78.50 cents/pound
D. 80.00 cents/pound
E. None of the above
3. How many total acres are included in the "N 1/2 of the
NE 1/4 and E 1/2 of the NW 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
4. How much perimeter fence would be required to completely
enclose the parcel of land described in the above
question?
A. 1.5 miles
B. 2.0 miles
C. 2.5 miles
D. 3.0 mile
E. None of the above
5. 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
6. 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
7. If a farmer purchased land for $160,000, has a loan of
$100,000 remaining on the land, and the market value of
the land is $200,000, the book value of the land on the
balance sheet will be
A. $40,000.
B. $60,000.
C. $100,000.
D. $160,000 less any accumulated depreciation.
E. None of the above
8. 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
9. A soybean producer decides to store his soybeans in the
local elevator for three months. The price at harvest
is $5.00 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 $25,000 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. $5.11
B. $5.21
C. $5.22
D. $5.31
E. None of the above
10. A farmer is purchasing a new baler at a cost of $24,000.
His dealer will finance the baler under the following
terms: 20% down payment with the balance repaid in
equal payments over the next six years at 7% APR. The
farmer expects the baler to last for 8 years and have a
salvage value of $6,000. How much interest will the
farmer pay the first year of the loan?
A. $1,120
B. $1,344
C. $1,456
D. $1,680
E. None of the above
11. An increase 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. increased exports.
D. no effect on imports or exports.
E. None of the above
12. If the discount rate is 9%, what is the present value of
a dollar to be received by a producer two years from
now?
A. $0.842
B. $0.857
C. $0.917
D. $1.188
E. None of the above
13. Farmer Jones has $10,000 in equipment he uses
exclusively for corn. He assumes that this equipment
will last 5 years and have a salvage value of $0. He
plans to plant 50 acres of corn each year. Assuming an
interest rate of 8%, what will be his average fixed
costs per year for the next 5 years (depreciation and
interest) for this machinery per acre of corn?
A. $20
B. $24
C. $29
D. $48
E. None of the above
14. In 1998, 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 for 1998 would be
A. 2.9%
B. 5.0%
C. 6.5%
D. 11.0%
E. None of the above
15. 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.
16. A constant payment loan with payments consisting of
principal and interest is called
A. a complementary loan.
B. a discounted loan.
C. a fixed rate loan.
D. a capital loan.
E. an amortized loan.
17. A charge for capital used in a farmer's cattle herd is
usually included in an enterprise budget regardless of
the farmer's equity position with respect to the herd
(it does not depend on whether he borrowed money to buy
the cows or not). This illustrates the principle of
A. marginal cost.
B. fixed cost.
C. opportunity cost.
D. variable cost.
E. alternative cost.
18. How many pounds of 48% protein soybean meal must be
mixed with 7% protein corn to make a ton of 14% protein
feed?
A. 316 pounds
B. 341 pounds
C. 400 pounds
D. 439 pounds
E. None of the above
19. A feedlot operator buys feeder steers, finishes them,
and sells them. The operator estimates that finished
steers will sell for $65 per cwt. and that it will cost
$175 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. $64.77/cwt.
B. $67.60/cwt.
C. $72.00/cwt.
D. $74.93/cwt.
E. None of the above
20. A $1 deductible expense (before tax) will cost ______
after tax if the farmer's marginal tax rate is 35%.
A. $0.00
B. $0.35
C. $0.65
D. $1.00
E. None of the above
21. A farmer has total assets of $630,000 of which land is
$400,000. The farmer's debt/equity ratio is 0.8. What
will the farmer's debt/equity ratio be if the value of
land deflates by 10%?
A. 0.698
B. 0.718
C. 0.744
D. 0.903
E. None of the above
22. 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
23. A farmer has a debt/worth ratio of 1:2. The current
liabilities total $30,000 and the non-current
liabilities total $60,000. What is the value of the
assets?
A. $420,000
B. $360,000
C. $270,000
D. $120,000
E. None of the above
24. A cattle feeding operation has sales of $730,000, feed
purchases of $300,000, other costs of $400,000, an
opening inventory of $400,000, and a closing inventory
of $380,000. 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
25. If corn silage as fed contains 60% moisture and 2.3%
protein, the dry matter would be what percent protein?
A. 2.80
B. 5.75
C. 6.57
D. 8.00
E. None of the above
26. On March 1, 1998, Kate borrowed $26,000 to plant corn.
On December 1, 1998, she repaid the $25,000 along with
$1,734.37 interest. What annual interest rate did she
pay?
A. 8.89%
B. 9.25%
C. 9.75%
D. 10.50%
E. None of the above
27. A producer sells 12 feeder steers for $80/cwt. The
average weight per steer is 650 pounds. There is a 3%
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. $6,052.80
D. $6,214.80
E. None of the above
28. To consider the time value of money in analyzing
alternative farm investments, one should choose the
investment with the
A. highest net present value.
B. largest net cash flow over the lifetime of the
investment.
C. highest average profits over the investment
lifetime.
D. lowest cost.
E. None of the above
29. 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
30. 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
31. 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
32. A feedlot operator purchases a pen of 100 feeder steers
with an average weight of 788 pounds and sells them at
an average weight of 1081 pounds. Total feed cost for
the pen is $15,090. 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
33. A trader with a short 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.
34. Livestock, stored grain, land, and personal property
used to secure a loan are
A. collateral.
B. inventory.
C. liabilities.
D. net worth.
E. illiquid.
35. The Pig Palace Custom Feedlot purchased a group of
feeder pigs weighing 40 pounds each and sold them
weighing 270 pounds after feeding them for 150 days.
Each pig ate 770 pounds of feed during the feeding
period. Average daily gain for each pig in the group
during the feeding period was
A. 1.53 pounds per day.
B. 1.67 pounds per day.
C. 2.08 pounds per day.
D. 3.25 pounds per day.
E. None of the above
36. The main reason for hedging is
A. to make more profit.
B. to insure against a production loss.
C. to reduce the price risk associated with producing
or storing a cash commodity.
D. to take an opposite position from the speculator.
E. None of the above
37. Roundup ready soybeans are now widely used by farmers.
This has caused the demand curve for Treflan (a grass
control herbicide for soybeans) to move
A. upward and to the right.
B. downward and to the left.
C. not at all.
D. None of the above
Farmer Douglas will buy 600 pound steers in late October.
He will have to pay $80 per hundredweight for the 600 pound
steers. Expected annual prices for 1100 pound steers is $69
per cwt. However, there is normally seasonal variation in
fed cattle prices. The monthly price indexes for slaughter
steers are:
Index Index
January 102 July 96
February 103 August 97
March 104 September 98
April 103 October 99
May 100 November 101
June 97 December 100
38. What price for 1100 pound steers can Mr. Douglas expect
for an April selling date?
A. $67.96 per cwt.
B. $70.00 per cwt.
C. $71.07 per cwt.
D. $72.10 per cwt.
E. None of the above
39. What price can Mr. Douglas expect for a May selling
date?
A. $69.00 per cwt.
B. $70.00 per cwt.
C. $71.03 per cwt.
D. $72.10 per cwt.
E. None of the above
40. Assuming an April selling date and all costs (excluding
purchase of the feeder steers) totals $200 per head, Mr.
Douglas can expect a profit of
A. less than $0 (he would lose money).
B. $0 - $49.99 per head.
C. $50 - $99.99 per head.
D. $100 - $149 per head.
E. over $150 per head.
-----------------------------------------------------------
1999 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, 1999:
Land . . . . . . . . . . . . . . . . . . $312,000
Accounts payable. . . . . . . . . . . . . 10,200
Machinery and equipment . . . . . . . . . 93,000
Cows . . . . . . . . . . . . . . . . . . 24,000
Calves . . . . . . . . . . . . . . . . . 5,500
Sows and boars. . . . . . . . . . . . . . 20,000
Market hogs . . . . . . . . . . . . . . 60,000
Checking and savings. . . . . . . . . . . 27,000
Wheat . . . . . . . . . . . . . . . . . . 6,800
Hog buildings . . . . . . . . . . . . . . 68,000
Feed and hay. . . . . . . . . . . . . . . 13,500
Accrued interest owed . . . . . . . . . . 20,100
Accrued taxes owed. . . . . . . . . . . . 22,600
30-year land loan balance is $210,000.
$14,000 plus interest is due March 1 of each
year.
10-year hog building loan balance is $33,000.
$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, 1999,
was:
A. $112,800
B. $132,800
C. $136,800
D. $156,800
E. None of the above
2. The total value of non-current assets was:
A. $312,000
B. $380,000
C. $405,000
D. $473,000
E. None of the above
3. The total value of current liabilities was:
A. $52,900
B. $62,454
C. $77,900
D. $87,454
E. None of the above
4. The total value of non-current liabilities was:
A. $196,000
B. $210,000
C. $246,662
D. $281,216
E. None of the above
5. The net worth was:
A. $250,616
B. $295,684
C. $307,516
D. $386,470
E. None of the above
6. The current ratio was:
A. 0.73
B. 0.78
C. 0.84
D. 1.29
E. None of the above
7. The debt to asset ratio was:
A. 0.41
B. 0.47
C. 0.53
D. 0.59
E. None of the above
PROBLEM II -- Enterprise Budget
Use the following soybean budget to answer Questions 8
through 16.
SOYBEANS, per acre, bottomland (loam soil), owned equipment
____________________________________________________________
Your
Operating Inputs Units Price Qty. Value Value
Soybean seed Lbs. 0.25 45.00 $11.25 ______
Nitrogen (N) Lbs. 0.25 15.00 3.75 ______
Phosphate (P2O5) Lbs. 0.11 40.00 4.40 ______
Potash (K2O) Lbs. 0.08 40.00 3.20 ______
Pre-emerg herbicide Acre 14.02 1.00 14.02 ______
Post-emerg herbicide Acre 4.69 1.00 4.69 ______
Rent fert spreader Acre 2.35 1.00 2.35 ______
Annual oper. capital Dol. 0.105 23.335 2.46 ______
Machinery labor Hour 6.00 2.027 12.16 ______
Mach fuel, lube, repair Dol. 18.53 ______
Total operating costs $76.81 ______
Fixed costs
Machinery: Amount Value
Interest at 10.675% 184.08 19.65 ______
Depr., taxes, insurance 24.20 ______
Total fixed costs 43.85 ______
Production Units Price Qty Value
Soybeans Bu. 5.00 34. 170.00 ______
Total receipts 170.00 ______
Returns above total operating costs 93.19 ______
Returns above all specified costs 49.34 ______
____________________________________________________________
8. Total operating cost per acre is:
A. $2.46
B. $76.81
C. $79.94
D. $120.66
E. None of the above
9. The return above total operating cost per acre is:
A. $49.34
B. $93.19
C. $120.66
D. $123.79
E. None of the above
10. How many hours of labor are budgeted per acre?
A. 2.027
B. 6.00
C. 12.16
D. 76.81
E. None of the above
11. What is the total budgeted interest cost per acre?
A. $2.46
B. $19.65
C. $22.11
D. $43.85
E. None of the above
12. What price per bushel is paid for seed beans? (Hint: A
bushel of soybeans weighs 60 pounds.)
A. $5.90
B. $11.25
C. $15.00
D. $45.00
E. None of the above
13. What is the total specified fertilization cost per acre?
(ignore cost of labor and operating capital)
A. $3.75
B. $7.60
C. $11.35
D. $13.70
E. None of the above
14. What yield will cause returns above all specified costs
to equal zero?
A. 13.02 bu.
B. 20.45 bu.
C. 24.13 bu.
D. 26.17 bu.
E. None of the above
15. What will be the per acre returns above all specified
costs if one-third of the crop must be given to the
landlord for rent of the land?
A. -$7.33
B. $13.07
C. $53.29
D. $56.92
E. None of the above
16. If one-third of the crop is given as rent, what price
received for soybeans will make the per acre receipts
above all specified costs equal zero?
A. $5.32
B. $5.54
C. $5.89
D. $6.03
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 June 5, 1998, Sam traded tractors. The old tractor had a
remaining undepreciated value of $22,404. Sam paid $39,000
"boot" in the trade for the new tractor.
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 Sam does not expense any of the cost of the tractor,
then 1998 depreciation will be (use regular MACRS and
mid-year convention):
A. $2,400.36
B. $4,178.46
C. $6,578.82
D. $9,210.60
E. None of the above
19. If Sam expenses the maximum on the tractor trade, and
uses the mid-quarter convention and regular MACRS, then
1998 depreciation will be:
A. $5,746.13
B. $5,813.10
C. $5,880.06
D. $5,947.03
E. None of the above
20. If Sam does not expense and uses the mid-year convention
and straight line depreciation over the alternate MACRS
life, his 1998 depreciation will be:
A. $1,950.00
B. $3,070.20
C. $4,386.00
D. $6,140.40
E. None of the above
21. If Sam uses regular MACRS, then the first year the
tractor will appear on Sam's January balance sheet with
a zero book value will be in
A. 2004.
B. 2005.
C. 2006.
D. 2007.
E. None of the above
22. Under MACRS, a machine shed is classified as
A. 7-year property
B. 10-year property
C. 15-year property
D. 20-year property
E. None of the above
PROBLEM IV -- Supply and Demand
(see 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 November 10, a farmer has 10,000 bushels of soybeans in
his bins. He sells them on April 5. Ignore commissions,
storage cost, and interest.
November 10 quotes: April 5 quotes:
May futures price = $6.80 May futures price = $8.30
Expected basis = $0.10 under Basis = $0.05 over the board
the board
Strike -- Premiums -- -- Premiums --
price Call Put Call Put
$6.75 $0.35 $0.30 $1.52 $0.01
$7.00 $0.20 $0.50 $1.27 $0.02
$7.25 $0.10 $0.72 $1.02 $0.03
$7.50 $0.05 $0.96 $0.78 $0.05
$7.75 $0.02 $1.21 $0.55 $0.10
$8.00 $0.01 $1.46 $0.35 $0.20
29. Puts and calls for soybeans are traded on
A. New York Stock Exchange
B. Chicago Mercantile Exchange
C. Chicago Board of Trade
D. Kansas City Board of Trade
E. None of the above
30. What is the cash price of soybeans on April 5?
A. $6.70
B. $8.25
C. $8.30
D. $8.35
E. None of the above
31. If the farmer sold a futures contract on November 10 and
bought back the contract on April 5, what would be the
realized price per bushel (cash + net on futures) for
these soybeans?
A. $6.80
B. $6.85
C. $8.30
D. $8.35
E. None of the above
32. If the farmer bought a $7.00 Put on November 10 and sold
the Put on April 5, what would be the realized price per
bushel (cash + net on options) for his soybeans?
A. $7.85
B. $7.87
C. $8.78
D. $8.83
E. None of the above
33. If the farmer bought a $7.00 Put and sold a $7.00 Call
on November 10, and sold the Put and bought back the
Call on April 5, what would be the realized price per
bushel (cash + net on options) for his beans?
A. $6.80
B. $7.10
C. $7.40
D. $8.05
E. None of the above
34. Given all the information above, which of the following
actions taken on November 10 turned out to be the most
profitable?
A. Selling a futures contract.
B. Buying a $7 Put option.
C. Buying a $7 Put and selling a $7 Call.
D. Taking no market action.
PROBLEM VI - Profit and Loss
Jackie Jones' farm has cash revenue for the year of
$200,000. Her farm cash operating expenses for the year
total $175,000. Her farm depreciation for the year is
$30,000. The value of her livestock and grain inventory
increased by $15,000 from Jan. 1 to Dec. 31.
Using only the above information, answer questions 34-38.
35. Jackie's cash flow for the year was
A. negative by $40,000.
B. negative by $10,000.
C. positive by $5,000.
D. positive by $25,000.
E. None of the above
36. Jackie's net farm income based on cash accounting is
A. -$5,000.
B. $0.
C. $5,000.
D. $25,000.
E. None of the above
37. Jackie's net farm income based on accrual accounting is
A. -$5,000.
B. $5,000.
C. $10,000.
D. $25,000.
E. None of the above
38. Jackie's net capital return ratio is
A. 0.125
B. 0.150
C. 0.200
D. 0.250
E. Not enough information given
39. The accrual basis value of farm production is
A. $200,000.
B. $215,000.
C. $230,000.
D. $245,000.
E. None of the above
40. Jackie's taxable income based on cash accounting is
A. -$5,000.
B. $0.
C. $5,000.
D. $25,000.
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.
----------------------------------------------------------------
1999 DISTRICT FFA FARM MANAGEMENT CONTEST
Key
Multiple Choice
1. A 11. B 21. D 31. B
2. C 12. A 22. B 32. B
3. C 13. D 23. C 33. A
4. C 14. B 24. A 34. A
5. C 15. C 25. B 35. A
6. B 16. E 26. A 36. C
7. D 17. C 27. A 37. B
8. E 18. B 28. A 38. C
9. B 19. C 29. A 39. A
10. B 20. C 30. B 40. D
Problems
1. A 11. C 21. C 31. B
2. E 12. C 22. D 32. B
3. D 13. D 23. D 33. A
4. C 14. C 24. B 34. D
5. B 15. A 25. A 35. D
6. D 16. A 26. B 36. A
7. C 17. C 27. C 37. C
8. B 18. C 28. C 38. E
9. B 19. A 29. C 39. B
10. A 20. B 30. D 40. A