suppose to construct a cost and market basis balnace sheet ... please help

question 4-9

1. The farm bank account has a balance of $4,250. 2 2. Their grain inventory is as follows: a. Total corn in storage is 44,000 bushels. Current market price is $6.00/bushel. Total soybeans in storage are 7,000 bushels. Current market prices is $12.50/bushel. 3. Their livestock inventory is as follows: a. 1,200 head of 50-pound feeder pigs. Current value is $50 each 60,000 b. 800 head of pigs weighing about 150 pounds. Current market price for 250-pound market hogs is $1.00 per pound ($250 per head), so value them at $150 each. 110,000 100 sows, valued at $200 each, and 8 boars worth $500 each. Breeding livestock were assumed to have a cost basis value of $18,000, determined using the base value method. 4. They have 300 bags of purchased seed in storage for which they paid $80 per bag. 5. In November, they applied $17,000 worth of fertilizer on their crop land. 6. They also prepaid the Co-Op $20,000 for additional fertilizer to be delivered and applied in April. 7. In December, they sold 150 feeder pigs to a nephew for $12,000, to be paid when the pigs are sold in February. 8. Their other machinery and equipment have a depreciated value of $417,000 from their depreciation schedule, but they estimate its market value at $440,000. 9. The farm has several older buildings that added $50,000 to the purchase price of the farm 10 years ago. They have deducted $24,000 in depreciation expense from that purchase, so far. Their estimated market value is $30,000. 10. They own 240 acres of farmland that they purchased ten years ago for $588,000. They estimate its current value at $924,000. They also rent 500 acres of cropland for $125 per acre. 11. They own a pontoon boat they use for fishing that they purchased seven years ago for $28,500. They estimate the current value at $47,500. 12. The current operating loan with Farm Credit is $87,300, with accumulated interest of $2,370. 13. They owe Crop Managers, Inc. $1,500 for taking soil samples in November. 14. They owe $60,000 to First National Bank for their combine, at 8% interest. Their last payment was made December 1. Next December 1, they will have to pay $20,000, plus interest of $4,800. 15. They owe $200,000 for purchase of the farm, at 6% annual interest. They made a payment last March 1. Their next payment will be March 1, principal of $18,000, plus interest. 16. Pacha Sisters contributed capital was $1,000,000. 17. Assume a tax rate of 24% for the Current Portion - Deferred Taxes 18. Assume a tax rate of 15% for the Non-Current Portion - Deferred Taxes Assets Current Assets MA castvchecking account grain inventory Ivestock inventory seed inventory A Sub-Total Noncurrent Assets (Long-Term Assets) M Sub-Total E W TW W. H Cost Basis S 15 IS S $ 4 S 3 15 5 15 $ S T S 13 5 15 S Market Basis 14,250 351,100 24.000 4,250 $ 351,500 $ S 24,000 $ S S 5 5 S S S S 3 S 3 5 $ 11 13 S Liabilities & Owners' Equity Current Liabilities Sub-Total Noncurrent Liabilities (Long-Term Liabilities) Sub-Total Total Liabilities Owners Equity $ $ S S $ $ 3 15 5 5 $ 1 5 S 3 S S 1 Cost Basis Market Basis 5 5 $ $ S S 3 S 5 S $ S A S 1 TY 3 $ Sub Total Total Assets Calculated Rabos Current Ratio Working Capital DebtAsset Ratio Equity Asset Ratio Debut quity Ratio DetAsset formula Linkage) Luty Asset formele Linkage) Dete Structure Ratio S S $ Cost Basis PON AGEC 324 Balance Sheet Template $ 5 S Market Basis KON O Total Liabilities Owners' Equity Total Equity Total Liabetes and Equity Comments $ $ 18 1$ 13 1 $ $ S 1. The farm bank account has a balance of $4,250. 2 2. Their grain inventory is as follows: a. Total corn in storage is 44,000 bushels. Current market price is $6.00/bushel. Total soybeans in storage are 7,000 bushels. Current market prices is $12.50/bushel. 3. Their livestock inventory is as follows: a. 1,200 head of 50-pound feeder pigs. Current value is $50 each 60,000 b. 800 head of pigs weighing about 150 pounds. Current market price for 250-pound market hogs is $1.00 per pound ($250 per head), so value them at $150 each. 110,000 100 sows, valued at $200 each, and 8 boars worth $500 each. Breeding livestock were assumed to have a cost basis value of $18,000, determined using the base value method. 4. They have 300 bags of purchased seed in storage for which they paid $80 per bag. 5. In November, they applied $17,000 worth of fertilizer on their crop land. 6. They also prepaid the Co-Op $20,000 for additional fertilizer to be delivered and applied in April. 7. In December, they sold 150 feeder pigs to a nephew for $12,000, to be paid when the pigs are sold in February. 8. Their other machinery and equipment have a depreciated value of $417,000 from their depreciation schedule, but they estimate its market value at $440,000. 9. The farm has several older buildings that added $50,000 to the purchase price of the farm 10 years ago. They have deducted $24,000 in depreciation expense from that purchase, so far. Their estimated market value is $30,000. 10. They own 240 acres of farmland that they purchased ten years ago for $588,000. They estimate its current value at $924,000. They also rent 500 acres of cropland for $125 per acre. 11. They own a pontoon boat they use for fishing that they purchased seven years ago for $28,500. They estimate the current value at $47,500. 12. The current operating loan with Farm Credit is $87,300, with accumulated interest of $2,370. 13. They owe Crop Managers, Inc. $1,500 for taking soil samples in November. 14. They owe $60,000 to First National Bank for their combine, at 8% interest. Their last payment was made December 1. Next December 1, they will have to pay $20,000, plus interest of $4,800. 15. They owe $200,000 for purchase of the farm, at 6% annual interest. They made a payment last March 1. Their next payment will be March 1, principal of $18,000, plus interest. 16. Pacha Sisters contributed capital was $1,000,000. 17. Assume a tax rate of 24% for the Current Portion - Deferred Taxes 18. Assume a tax rate of 15% for the Non-Current Portion - Deferred Taxes Assets Current Assets MA castvchecking account grain inventory Ivestock inventory seed inventory A Sub-Total Noncurrent Assets (Long-Term Assets) M Sub-Total E W TW W. H Cost Basis S 15 IS S $ 4 S 3 15 5 15 $ S T S 13 5 15 S Market Basis 14,250 351,100 24.000 4,250 $ 351,500 $ S 24,000 $ S S 5 5 S S S S 3 S 3 5 $ 11 13 S Liabilities & Owners' Equity Current Liabilities Sub-Total Noncurrent Liabilities (Long-Term Liabilities) Sub-Total Total Liabilities Owners Equity $ $ S S $ $ 3 15 5 5 $ 1 5 S 3 S S 1 Cost Basis Market Basis 5 5 $ $ S S 3 S 5 S $ S A S 1 TY 3 $ Sub Total Total Assets Calculated Rabos Current Ratio Working Capital DebtAsset Ratio Equity Asset Ratio Debut quity Ratio DetAsset formula Linkage) Luty Asset formele Linkage) Dete Structure Ratio S S $ Cost Basis PON AGEC 324 Balance Sheet Template $ 5 S Market Basis KON O Total Liabilities Owners' Equity Total Equity Total Liabetes and Equity Comments $ $ 18 1$ 13 1 $ $ S