ECON 301 Midterm: ECON 300 IA State Test2Key
Document Summary
Use the following machinery cost information to answer questions 6 through 9. Half- credit is given for second choice, no penalty. (4 points each) Net farm income: family living and other personal withdrawals, federal and state income taxes, opportunity cost of owner labor, opportunity cost of owner management, both a and b, both c and d, both b and d. Part iii: use the 2005 - 2006 financial information presented on pages 7 through 11 to answer questions 13 through 15. Put a square around your second choice if you want. Assume the opportunity cost for the farm manager"s labor is ,750, for his/her management is ,350 and for his/her equity capital is ,300: 2. 8 , 3. 1 , 4. 3 , 6. 8 , 7. 0 % Part v: complete the income statement (accrual adjusted). Please complete the summary below and calculate the 2006 net farm income using the 2005 2006 financial information reported on pages 7 through 11. (25 points)
