You are looking at a farm’s balance sheets from December 31,…

You are looking at a farm’s balance sheets from December 31, 2023.  Equity on a cost basis was $1,275,923. When looking the total equity on the market basis balance sheet it was 1,303,571. The farmer asks why there are two different numbers for her equity.  Clearly explain why these two numbers are different.

You purchased a $200,000 combine that will have a salvage va…

You purchased a $200,000 combine that will have a salvage value of $30,000 after years.  Calculate the annual depreciation for the first year of useful life using the declining balance method. The depreciation rate is 150% of the straight line rate.  Assume you owned the combine for the entire year.  Use 2 decimal places in your answer. Do not use $ in your answer.