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Julie's Bakeshop bought a loaf bread machine for P500.000 on June 1. 2010. It is estimated that it will have a useful life of 10

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Julie's Bakeshop bought a loaf bread machine for P500.000 on June 1. 2010. It is estimated that it will have a useful life of 10 years. a scrap value of P10.000. production of 400.000 loaves of bread and working hours of 150.000. The company uses the machine for 15.000 hours in 2010 and 20.000 hours in 2011. The machine produces 40.000 loaves in 2010 and 50.000 loaves in 2011. Compute the depreciation in 2011 using (a) service-output method (b) working hours method * A Die Attach machine was bought for $200,000 and used it for 10 years. What is the book value of the machine after 5 years if the salvage value is $20,000 using the double declining balance method? *A local factory making 10 [:1 watches produces 500 units per month and sells them at P2.000 each. Dividends are 6% on the 10,000 shares with par value of P300 each. The fixed operating cost per month is P30.000. Other costs are P1200 per watch. Determine the break-even point. If only 30 units were produced and sold per month. determine the profit or loss. * A steam boiler was bought for P300.000. Other expenses including freight and installation amounted to P20,000. The boiler is expected to have a life of 12 years with a salvage value of 10% of the purchase price. Determine the book value at the end of 10 years using the Matheson formula at 8% annual interest * Determine the total depreciation up to the end of 6 years for a large dryer that casts P50.000 when new and has an estimated salvage value of P2.000 at the end of 10 years by the double declining balance method *

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