Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculate the Rate of Return on Farm Equity for 2020 using the following facts: The following information is for the year 2020: Total revenue (total

image text in transcribed
Calculate the Rate of Return on Farm Equity for 2020 using the following facts: The following information is for the year 2020: Total revenue (total gross revenue) Value of farm production $785,000 $667,000 Income from operations $100,000 Farm Interest (expense) $18,000 Depreciation expense $50,000 $30,000 Value (opportunity cost) of operator labor Value (opportunity cost) of operator management Opportunity Interest Rate $20,000 4% $1,000,000 Total farm asset value: Beginning (1/1/20) Ending (12/31/20) Farm equity: Beginning (1/120) Ending (12/31/20) $1,100,000 $700,000 $750,000 4.41% 4.27% 4.57% 4.76%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Anti Money Laundering Governance Risk Management And Compliance GRC Book 4

Authors: Uwem Essia, Kester Ehiwario

1st Edition

B0BBXZ6GKR, 979-8848908473

More Books

Students also viewed these Accounting questions

Question

4. Support and enliven your speech with effective research

Answered: 1 week ago

Question

3. Choose an appropriate topic and develop it

Answered: 1 week ago