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The Alpha Drug Company has just purchased a capsulating machine for Rs

Economics

The Alpha Drug Company has just purchased a capsulating machine for Rs. 20,00,000. The plant engineer estimates that the machine has a useful life of five years and a salvage value of Rs. 25,000 at the end of its useful life. Compute the depreciation schedule for the machine by each of the following depreciation methods:

(a) Straight line method of depreciation

(b) Sum-of-the-years digits method of depreciation

(c) Declining balance method of depreciation

give all steps in detail.

Option 1

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