Current Purchasing Power Accounting (CPPA):This approach is also known as General Price Level Accounting. Under this approach, the historic cost accounting data are adjusted on the basis of any established and approved general price index at a given date. In India, the Wholesale Price Index (WPI) of the Reserve Bank of India (RBI) can be taken which shows the change in the value of the rupee in the past years. This approach takes into account the changes in the value of items as a result of the general price level, but it does not account for changes in the value of individual items. The formula for the conversion of historic cost to the general price level is as under:Conversion Factor = Index Converting To / Index Converting From? Conversion Factor = 200/150 = 1. 33333The original invested capital is then multiplied by this conversion factor. Value Of Machinery = 60000 x 1. 33 = Rs. 80,000. Thus, option 3 is the correct answer.