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Balance Sheet, Jan 1, 2019 Current Assets Cost Current Liabilities Cost Cash 13,000 Accounts Payable 35,000 Corn Grain Inventory 20,000 Interest Payable 11,850 Wheat Inventory

Balance Sheet, Jan 1, 2019

Current Assets

Cost

Current Liabilities

Cost

Cash

13,000

Accounts Payable

35,000

Corn Grain Inventory

20,000

Interest Payable

11,850

Wheat Inventory

10,000

Principal Farm Mortgage

20,000

Prepaid expenses

5,500

Principal Beef Loan

10,000

Feed on hand

80,000

Operating Loan

75,000

Market Livestock

32,000

Property Taxes Payable

15,000

Accounts Receivable

2,000

Supplies

4,000

Total current assets

166,500

Total current liabilities

166,850

Intermediate Assets

Intermediate Liabilities

Machinery

300,000

Beef Loan

100,000

Beef Breeding Stock

55,000

Titled Vehicles

26,000

Total Intermediate Assets

381,000

Total Intermediate Liabilities

100,000

Long-Term Assets

Long-term Liabilities

Land

318,000

Farm Mortgage

170,000

Buildings

67,000

Total Long-term Assets

385,000

Total Long-term Liabilities

170,000

Total liabilities

436,850

Owner equity

495,650

Total Assets

932,500

Total liabilites & owner equity

932,500

Create the Beginning Balance Sheet (Jan 1, 2019) in a new spreadsheet.

Question 1

On a new sheet in your spreadsheet file, calculate the annual depreciation for each depreciable asset on your opening balance sheet. The beef breeding livestock on the Jan 1, 2019 balance sheet are purchased. Use a depreciation rate of 10% for the breeding livestock, 10% for machinery and equipment, and 5% for any other depreciable assets. Calculate how much the book value of each depreciable asset would be on December 31, 2019.

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