SOUTHERN JOURNAL OF AGRICULTURAL ECONOMICS DECEMBER, 1978 INCOME TAX ASPECTS OF LIQUIDATION IN MULTIPERIOD LINEAR GROWTH MODELS

have given much attention to research on farm-firm growth. One procedure used in this type of Boussard suggests that the relevant length research has been multiperiod linear program- of a planning horizon is the time needed to ming models, ' e.g. [1, 6, 9, 11, 14, 17]. Several make a decision for the first period [7, p. 468]. researchers using the multiperiod linear pro- This definition implies that anything affecting gramming framework have compared optimiz- the first period decision should be included in ing criteria [6, 9, 14]. Generally, comparisons the planning horizon. Therefore, in setting the were made between maximizing some type of planning horizon one should consider the present value criterion and maximizing net appropriate condition of continuity for (1) a worth at the end of the planning horizon. The firm with indefinite liquidation plans or (2) a different assumptions associated with the two firm which ceases operations and liquidates its maximizing criteria have resulted in different assets. These two situations are common in the optimal growth patterns, real world. The former firms are the usual Theoretically, both criteria are acceptable going concerns with no plans to terminate objectives. Hicks [10, p. 197] states that the operations, and the latter are firms such a