Observation

This question was fairly attempted by the candidates. Most of the candidates were able to state the advantages and disadvantages of sprinkler irrigation and outline the ways in which irrigation is important in crop production as required 5(a-b), but most of them could not explain the term farm budget as required in 5(c). More so, most of them could not calculate the salvage value, useful life, total depreciation and annual depreciation of the tractor as required in 5(d)(ci – iv).

The expected answers include:

5(c)  Meaning of a farm budget
It is an estimated future income and expenditure of farm operation/farm business/enterprise usually within a period of time
5d)(i)  Salvage value of the tractor
D30,000.00
(ii)  Useful life of the tractor
Year of sale – year of purchase
2006 - 1996
= 10 years
(iii)  Total depreciation of the tractor
Cost price - salvage value
D200,000 – D30,000
= D170,000.00
(iv)  Annual depreciation of the tractor
Cost price - salvage value/ Useful life
D200,000 - D30,000 / 10 years
D170,000 / 10 years
= D17,000.00 per annum
OR
Total depreciation / Useful life
D170,000 / 10,000 years
= D17,000.00 per annum