METHODS OF STUDYING AGRICULTURAL QUESTIONS 409 



Equipment 



XL Horse Equipment $ 136.35 $ m.oo 



XII. Cattle Equipment 143.10 130.20 



XIII. Poultry Equipment 1.20 



XIV. Horse and Power 



Machinery 1,119.20 991-85 



XV. Miscellaneous 



Equipment 183.50 165.55 



XVI. Carpenter's Tools 30.00 20.00 



XVII. Farm House 68.00 62.00 



Total Equipment $ 1,681.35 $ 1,480.60 



Total Farm Property $32,735.42 $34,880.89 



Increase in farm property $ 2,145.47 



The first task in taking an inventory is to list and to give an 

 accurate statement of the quantity of goods on hand on the date 

 for which the inventory is taken. The quantity of grain in a 

 bin, the amount of hay in a mow or in a stack, etc., should be 

 ascertained with great care, using the standard measurements. 



The livestock should be itemized one by one by classes as to 

 kind and age, all larger tools and machinery should be listed, 

 but small tools may be lumped as garden tools, carpenter 

 tools, etc. 



Basis of valuation. The valuation of the goods listed on the 

 inventory is the next important task. 



Is market price the starting point for valuing each piece of 

 property listed in the inventory? "At what price shall I 

 inventory the oats grown on the farm last year, and at what 

 price shall I charge them to the dairy-herd accounts? " The 

 answer to this question is not so simple as one might desire. 

 The object of the oats account is to know whether to grow oats 

 or some other crop requiring attention at the same time of year. 

 The object of the dairy-herd accounts is to know whether to be in 

 the dairy business or something else. There are at least two 

 prices at which the oats may be inventoried. The oats may be 

 valued at the local market price minus the cost of hauling them 

 to the market, or they may be valued at the local market price 

 plus the cost of hauling them from the market. Which of 

 these values to place upon the oats, depends upon the circum- 

 stances at the farm. If the farmer is an oat producer who 



