1) Joe Farmer started the year with $10,000 in crop inventory. He had $250,000 in cash receipts throughout the year and ended with $15,000 left in his crop inventory. Calculate the Value of Farm Production on the Income Statement. Round to the nearest dollar.

2) Which of the following statements about depreciation is not true:

1- Depreciation could be based on tax returns

2- Depreciation could be based on how much the non-current asset has worn out

3- Depreciation could be based on how much the land has de-valued

4- All of these statements are true

5-Depreciation could be based on useful life