On January 2, 1995, a food company purchased a machine priced at P750,000 that dispenses a pre-measured amount of tomato juice into a can. The estimated useful life of the machine is 12 years with a salvage value of P45,000. At the time of purchase, the company incurred the following additional expenses:Freight-in = P8,000Installation cost = P2,500Testing cost prior to regular operation = P1,200.Depreciation was calculated by the sum-of-the-years method. In January 1997, accessories costing P50,000 were added to the machine to reduce its operating costs. These accessories neither prolonged the machine’s life nor provided any additional salvage value.Calculate the depreciation charge for 1996 and 1997Calculate the book value at the BEGINNING of 1997 3. (20 points) On January 2, 1995, a food company purchased a machine priced at P750,000 thatdispenses a pre-measured amount of tomato juice into a can. The estimated useful life of the machineis 12 years with a salvage value of P45,000. At the time of purchase, the company incurred thefollowing additional expenses:Freight-in = P8,000Installation cost = P2,500Testing cost prior to regular operation = P1,200.Depreciation was calculated by the sum-of-the-years method. In January 1997, accessories costingP50,000 were added to the machine to reduce its operating costs. These accessories neither prolongedthe machine's life nor provided any additional salvage value.Calculate the depreciation charge for 1996 and 1997Calculate the book value at the BEGINNING of 1997

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Answered: On January 2, 1995, a food company…

Introduction to Chemical Engineering Thermodynamics

8th Edition

ISBN:9781259696527

Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart

Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart

Chapter1: Introduction

Section: Chapter Questions

Problem 1.1P

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On January 2, 1995, a food company purchased a machine priced at P750,000 that dispenses a pre-measured amount of tomato juice into a can. The estimated useful life of the machine is 12 years with a salvage value of P45,000. At the time of purchase, the company incurred the following additional expenses: Freight-in = P8,000 Installation cost = P2,500 Testing cost prior to regular operation = P1,200. Depreciation was calculated by the sum-of-the-years method. In January 1997, accessories costing P50,000 were added to the machine to reduce its operating costs. These accessories neither prolonged the machine’s life nor provided any additional salvage value. Calculate the depreciation charge for 1996 and 1997 Calculate the book value at the BEGINNING of 1997