(a) A farmer purchased a tractor in the year 2000 for D 12, 000.00. In 2009, the tractor was sold for D 3,000.00 as it was no longer economical to keep. Cal...
Question 1 Report
(a) A farmer purchased a tractor in the year 2000 for D 12, 000.00. In 2009, the tractor was sold for D 3,000.00 as it was no longer economical to keep. Calculate the:
(i) useful life of the tractor;
(ii) salvage value of the tractor;
(iii) total depreciation of the tractor;
(iv) annual depreciation of the tractor.
(b) Describe the following terms as used in agricultural economics:
(i) demand schedule;
(ii) supply curve.
(c) List four agricultural extension agencies in West Africa.
(d) State four ways through which soils are enriched with nitrogen.
Answer Details
(a) Calculations
Cost of tractor in 2000 = D 12,000.00; sold in 2009 for D 3,000.00.
(i) Useful life
\[ \text{Useful life} = 2009 - 2000 = 9\ \text{years} \](ii) Salvage value
The salvage value is the amount realised on disposal = D 3,000.00.
(iii) Total depreciation
\[ \text{Total depreciation} = \text{Cost} - \text{Salvage value} = 12{,}000 - 3{,}000 = D\ 9{,}000.00 \](iv) Annual depreciation
\[ \text{Annual depreciation} = \frac{\text{Total depreciation}}{\text{Useful life}} = \frac{9{,}000}{9} = D\ 1{,}000.00\ \text{per year} \](b) Description of terms
- (i) Demand schedule: A table showing the various quantities of a commodity that consumers are willing and able to buy at different prices over a period of time.
- (ii) Supply curve: A graph showing the relationship between price and quantity supplied; it slopes upward from left to right, showing that more is supplied at higher prices.
(c) Four agricultural extension agencies in West Africa
- Agricultural Development Project (ADP)
- Ministry of Agriculture
- Agricultural research institutes
- Farmers' cooperative societies
(d) Four ways soils are enriched with nitrogen
- Growing leguminous crops that fix atmospheric nitrogen through Rhizobium bacteria.
- Application of nitrogenous fertilizers.
- Application of organic manure and green manuring.
- Fixation of atmospheric nitrogen by lightning during rainfall.
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