*R is my registration number which is 85.you have to multiply each amount with are where (R) is mention.

Question 2 (20) You are running a manufacturing business. You are manufacturing at full capacity therefore you are required to purchase a new machine to increase the productivity in order to cope with the increasing demand of your product in the market. You purchased the machine at the start of the month of June 2021. When you purchased its actual cost worth Rs. 250*R, other costs include transportation cost Rs.6*R, setting cost Rs.12*R, testing cost Rs. 23*R, and labor cost Rs.15*R (sales tax 6% on the actual cost). The machine is supposed to work for 6 years and expected to be sold out when its book value decreased to Rs. 3500. (Round the figures to nearest 10) Requirements; i. Calculate depreciation expense and depreciation rate. ii. Prepare schedule for depreciation of the machine with Straight line method. Prepare schedule for depreciation of the machine with declining balance method. iv. Prepare general entry for the sale of machine (suppose the sale of the machine earns neither gain nor any loss). Suppose your machine is sold for Rs. 5000. Calculate the gain or loss. vi. Suppose your machine is sold for Rs. 1500. Calculate the gain or loss. vii. Explain the difference between declining balance method and double declining balance method. iii. V. viii. ix. When we use half-year convention method? Show the depreciation trend with the help of graph of the two methods illustrated above. Which method you think is suitable under which situation and why? X