Question 1 (a) (2 points)

Given the following information, what is the farm's net farm income from operations for the year? All numbers are given in thousands of dollars.

Cash farm income = 950

loan principal paid = 60 cash farm expenses = 800

interest paid = 5

opportunity cost of labor = 30

opportunity cost of management=5 gain/loss on sale of capital assets=-20

family living expenses = 50

depreciation = 40

OPTIONS:

	-60
	0
	85
	105

Question 1 (b) (2 points)

At the beginning of the year, crop inventories equaled $175,000. At the end of the year, crop inventories equaled $190,000. The accrual adjustment will be

OPTIONS:

	$15,000
	-$15,000
	$160,000
	-$175,000