should be accounted for in the second inventory, otherwise it 

 makes a double charge. It is usually best to disregard the purchase 

 item altogether. 



The difference between wheat sold, plus wheat on hand at the 

 second inventory, and the wheat produced, plus wheat on hand at 

 the first inventory, should be a reasonable amount for seed and 

 bread. 



11. See if the price per acre of real estate is consistent with that 

 of other farms in the locality. 



12. On small farms the estimated value of the farmer's labor, if 

 very small, would call for big labor expense; but if large, would 

 call for small labor expense. 



13. If a farmer has owned a farm a long time and has considerable 

 mortgage, this is inconsistent with a high labor income; but a new 

 farmer with a big mortgage may have a good labor income. If the 

 farmer bega;n as a laborer, then became a tenant, then an owner, 

 and now has no mortgage, this is proof he has made good labor 

 incomes in the past and should do so now if conditions on his farm 

 are normal. 



14. All calculations in a record should be checked to see that 

 no errors have crept in. Thus, if the original data consisted of 

 area and total quantity produced, all yields of crops are calculated. 

 If the original data consisted of area and yield per acre, the total 

 production is calculated. All these calculations should be checked 

 to see that they are accurate. All additions and subtractions 

 should be gone over for the same purpose. 



15. Receipts from sources having no relation to the farm busi- 

 ness should not be included in the farm receipts; but when part of 

 the labor or equipment belonging strictly to the farm is used 

 temporarily outside the farm, especially in the case of exchange 

 labor, the receipts for such use are a part of the business. Equip- 

 ment used continuously in other business except for short periods 

 should not be included in the farm business, and when used on 

 the farm the value for such use should be set down as an expense. 



16. Records for individual farms which the comparisons sug- 

 gested above show to be distinctly in error must either be corrected 

 by securing more accurate data or they must be discarded. It is 

 essential that a survey party should transfer the field record of each 



