Ag Bus- Quiz 2-1

purchasing a new combine is:

• income

• expense

buying seed to plant is:

• income

• expense

selling eggs from your chickens

• income

• expense

receiving a CRP payment is:

• income

• expense

Calculate depreciation for a combine that costs $500,000 brand new and will have a salvage price of $100,000 after 10 years of useful life.

• $400,000

• $50,000

• $40,000

• $10,000

depreciation is a:

• cash expense

• non-cash expense

How much would the interest expense be for a loan principal of $10,000 that is at 5% interest for 18 months?

• $500

• $750

• $250

• $1,000

Figure the Return to Assets for this operation:

Sally is raising pigs as her SAE project. She had $5,000 in income this year and $3,750 in expenses. She owns $1,000 in assets.

• 1.25

• 1.00

• .75

• .5

Figure the breakeven price:

Sally is raising pigs as her SAE project. She has $3,750 in expenses. How many pigs would she need to sell if she receives $150 per pig?

• 25

• 5

• 15

• 20

Figure breakeven price for the following:

Sally is raising pigs as her SAE project. She has $3,750 in expenses. She is raising 30 pigs.

• $125

• $100

• $200

• $100