To package its products, a company purchased an automatic packaging machine for P600,000. Freight, insurance, and installation charges amounted to P80,000.00. The machine is expected to be sold for P120,000.00 after packaging 320,000 units. If the machine packaged 40,000 units in its first year, 55,000 in its second year, and 48,000 units in its third year, determine a) the depreciation charge for the third year, (Ans. P84,000.00) b) the book value of the machine at the end of the third year. (Ans. P429,750.00)
To package its products, a company purchased an automatic packaging machine for P600,000. Freight, insurance, and installation charges amounted to P80,000.00. The machine is expected to be sold for P120,000.00 after packaging 320,000 units. If the machine packaged 40,000 units in its first year, 55,000 in its second year, and 48,000 units in its third year, determine a) the depreciation charge for the third year, (Ans. P84,000.00) b) the book value of the machine at the end of the third year. (Ans. P429,750.00)
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 29CE
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Question
To package its products, a company purchased an automatic packaging machine for P600,000. Freight, insurance, and installation charges amounted to P80,000.00. The machine is expected to be sold for P120,000.00 after packaging 320,000 units. If the machine packaged 40,000 units in its first year, 55,000 in its second year, and 48,000 units in its third year,
determine
a) the
b) the book value of the machine at the end of the third year. (Ans. P429,750.00)
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