Ouachita Wally is the owner of a cash grain farm located in eastern Louisiana. He got his start in the family operation about ten years ago. By using equipment from the family operation and renting adjacent farm land, Wally was able to convert several good crops into enough cash to purchase some irrigated land of his own after several years of renting from neighbors and working part-time for others. Wally's primary interests have always been crop management with only a passing interest in the financial aspects of the operation. As his own operation grows and he gains greater independence from the family operation, he is finding that his record keeping leaves something to be desired. Recognizing that good records will be necessary to better manage his operation, Wally has hired you to help him implement a complete record keeping system. After examining Wally's existing records and discussing them with him, you have acquired the information that follows. Relevant information regarding capital assets that Wally owns at this time: a. On September 1, 2017, Wally bought a used JD 7810 tractor for $62,000 with $18,000 cash and an 8 year amortized equal payment loan from Low Valley Bank at 5.5% interest for the remaining $44,000. Annual principal and interest payments ($6,946) are due September 1 each year. The tractor is being depreciated using a straight line method over 12 years with a salvage value of $25,000. b. On May 1, 2018, Wally purchased a half section (320 acres) of irrigated crop land from a neighbor for a total of $691,200. At the time of the purchase the two center pivot irrigation systems on the property were considered to be jointly worth $72,000 of the overall purchase price paid. The entire purchase was made with a $138,240 cash down payment and the balance ($552,960) was financed under a 30-year mortgage from Federal Land Bank with an effective interest rate of 4.5 percent annually. The loan was amortized so that annual principal and interest payments of $33,947 are due on May 1 each year. Wally depreciates the irrigation systems on a 10-year straight line method with a $12,000 total salvage value. c. On August 1, 2019, Wally purchased a new 8 row planter for $63,500 cash. It is being depreciated using a 7-year time-and-a-half declining balance method with a $19,000 salvage value. d. Wally has made payments on all outstanding loans as they have come due so all balances are consistent with the original loan payment schedules. Relevant information regarding Wally's inventories and accounts payable as of Jan 1, 2022: a. Wally owes $9,509 to the Grange Supply for fuel delivered in 2021. b. Cash, checking and savings balances total $7,437. c. Wally estimates his tractor has market value of $50,000 and his planter $51,000.