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)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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