State Farm Management Exam
2023-2024 Questions & Answers (Solved)
- An LLC (Limited Liability Company) is usually?
Answer: taxed like a partnership
- Farmer Brown has a debt-to-asset ratio of 53%. His debt-to-
equity ratio must be?
Answer: Greater than 100%
- An example of a variable cost would be?
Answer: Labor
- The total tax deduction for conservation expenses in any tax year
is limited to % of your gross income from farming for the year?
Answer: 25%
- Tax basis of a machine purchased with a trade-in is?
Answer: Book value of item traded plus cash difference paid
- Costs that are incurred regardless of the level of production are
referred to as?
Answer: Fixed
- Gary traded for a new pickup truck. The dealer's list price on the
new pickup was $43,000. The dealer allowed Gary $13,000 in trade for his old pickup and he paid $25,000 cash difference. The book value of his old truck was $16,000. The tax basis for 1 / 2
depreciation on the new pickup is?
Answer: $41,000
- If Gary decides to use Sec. 179 expensing on the new pickup, (ref.
previous question) he can expense up to?
Answer: 25,000
- Using a lower discount rate will cause the present value of future
earnings to?
Answer: Increase
- The exchange rate one year ago for the Japanese yen and the
U.S. dollars was 120 yen/dollar. This year, the exchange rate was 112 yen/dollar. This change in the exchange rate would be expected to cause the price of U.S. goods in Japan to?
Answer: Be 7% less expensive
- If corn silage as fed contains 60% moisture and 2.9% protein,
the dry matter would be what percent protein?
Answer: 7.25
- The maximum amount that can be claimed as a Section 179
expense deduction on your 2015 tax return is?
Answer: $500,000
- A farmer should issue an IRS Form 1099 for which of the
following?
Answer: $650 paid to a neighbor for land clearing with a
bulldozer
- A farmer has a debt/worth ratio of 1:3. The current liabilities
- / 2