1. You have a farmer's January 1 cost-basis balance sheet. There are some depreciable assets on this opening balance sheet. Clearly explain how you would determine the value of these assets the farmer still owns at the end of the year for his ending cost-basis balance sheet.

2. A farmer put in some new perimeter fencing around his pasture this year. The new fencing cost $25,000 and is expected to last 10 years. Which capital (financial) efficiency ratio will be impacted by the fencing cost? Explain why you chose that ratio.

6. When making accrual expense adjustments for accounts payable, the ending accounts payable is subtracted from the beginning accounts payable. When making the accrual adjustment for prepaid expenses, the beginning prepaid expenses is subtracted from the ending prepaid expenses. Clearly explain by the change in prepaid expenses is opposite to all the other accrual adjustments (ending minus beginning).

Answer rating: 100% (QA)

Determining Ending Depreciable Asset Values for CostBasis Balance Sheet Heres how you would determine the value of depreciable assets still owned by t... View the full answer