272 FARM ACCOUNTING 



ILLUSTRATION 56 



LABOR INCOME AND CAPITAL INCOME DETERMINED FROM Loss 



AND GAIN ACCOUNT OF ILLUSTRATION 54 WHEN INTEREST 



WAS NOT CHARGED AS A COST OF PRODUCTION 



Income from Oats $300 



Income from Corn "> (H) 



Income from Potatoes 4W 



Income from Swine 100 



Income from Cattle . . 300 



Gross Income $1,600 



Less Interest on Investment (calculated from property 

 accounts) 1 305 



Net Income as a farm manager $1,295 



Less Household Expense 200 



$1,095 



Add Interest on Investment >M~> 



Income as an individual including both interest on 

 investment and remuneration for management 

 and risk above laborer's wage previously charged 

 to productive elements $1,100 



1 See Interest on Land, Interest on Buildings, Interest on Livestock, 

 and Interest on Equipment, post. 



Loss and Gain account and the aggregate interest on capital 

 investment. 



The results obtained in this manner (Illustration 56) 

 are the same, for "Income as an individual" and "Income 

 as a farm manager," as the results obtained when int 

 is charged in the accounts as an element of cost (Illustra- 

 tion 57). 



In both cases, the net income from management is $lL > !">. 



