(a) Explain the following terms: (i) appreciation (ii) depreciation (iii) s salvage value  

(b) List two items on the farm which will normally appreciate value.

(c) A farmer bought a fairly used Fiat tractor for 312,000.00 in 1998. He later sold it for 33,000.00 in 1997 when he discovered that it was expensive to maintain. Find the tractors: (i) salvage value (ii) overall depreciation; (iii) annual depreciation