Tom and Jerry are started a custom farming business. They agree to continue to own their existing machinery and lease a large combine. Jerry is a master mechanic, and will take care of all repairs and maintenance in the winter while Tom works at a second job in town. Below are the equipment items Tom will contribute: Item Current Market Value $55,000 Tractor Chisel plow Field cultivator $21,000 $16,000 $18,000 Sprayer Grain drill Grain truck 2 wagons $25,000 $20,000 $8000 Below are the equipment items Jerry will contribute: Item Current Market Value Tractor $67,000 $27,000 $31,000 $12,000 Tractor Planter Disk Soil finisher Cultivator $11,000 $15,000 Grain truck Their other anticipated expenses are as follows: Annual Cost Tom's Share Jerry's Share Item Combine lease $40,000 50% 50% Machinery parts Fuel and lubricants Licenses and fees $15,000 100% S10,000 50% 50% 50% 50% $2000 Marketing and misc. 50% 50% Their expected labor hours are as follows: Tom's Share 1,200 hours 1,000 hours 0 hours Jerry's Share 1,500 hours 1,000 hours Tillage and planting Harvesting Maintenance and repair work 800 hours Develop a budget that shows the value of each person's contributions and the percent of the total that each one of them contributes. This can be used as a guide for dividing the revenue that they generate from their customers. Use the following guidelines: Estimate machinery ownership costs at 17% of the current value of the machinery. Value labor at $12 per hour.