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Financial and Credit Analysis of Farm Businesses
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|
Revisions to
Chapter 6, The Balance Sheet, Valuation Equity section, Page 123, Figure 8 |
|
Old Figure |
New Figure |
|
Item |
Market Value |
Tax Basis/ Base
Value |
Difference |
|
Raised Breeding
Livestock |
$13,500 |
$12,500 |
$1,000 |
|
Purchased
Breeding Livestock |
960 |
2,400 |
(1,440) |
|
Machinery &
Equipment |
190,500 |
147,220 |
43,280 |
|
Buildings &
Improvements |
59,500 |
43,245 |
16,255 |
|
Real Estate |
405,000 |
258,000 |
147,000 |
|
Total |
|
|
$206,095 |
|
|
|
|
|
|
Less: Noncurrent
Portion of Deferred Taxes |
53,963 |
|
|
|
|
|
|
Valuation Equity |
|
|
$152,132 |
|
|
|
|
|
|
|
Item |
Market Value |
Tax Basis/ Base
Value |
Difference |
|
Raised Breeding
Livestock |
$13,500 |
$12,500 |
$1,000 |
|
Purchased
Breeding Livestock |
960 |
2,400 |
(1,440) |
|
Machinery &
Equipment |
190,500 |
147,220 |
43,280 |
|
Buildings &
Improvements |
59,500 |
43,245 |
16,255 |
|
Real Estate |
405,000 |
258,000 |
147,000 |
|
Total |
|
|
$206,095 |
|
|
|
|
|
|
Less: Noncurrent
Portion of Deferred Taxes |
49,463 |
|
|
|
|
|
|
Valuation Equity |
|
|
$156,632 |
|
|
|
|
|
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| |
| Review Exercise Answer Key, Chapter 4,
Question 5 |
|
The FAFCB Answer Key incorrectly shows the answer for this question as
False.
It is actually a True statement.
Nonreal estate farm debt held by FSA did decrease from the late 1980s to the
late 1990s.
|
| Review Exercise Answer Key, Chapter 12,
Question 6 |
|
The FCAFB Answer Key incorrectly shows the answer to question 6 as False.
The correct answer is True.
A contract grower under a production management contract does have less
control over production decisions than a contract grower under a
market-specification contract.
|
| Review Exercise Answer Key, Chapter 18,
Question 20 |
|
The FCAFB Answer Key incorrectly shows the answer to question 20 as False.
The correct answer is True.
Further, this question should actually read as follows: “Assessing credit
risk is as appropriate for a large, multi-bank holding company affiliate as
for a small, unit bank.”
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