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how will the old x ray machine be treated 621418

Determination of Cost of Fixed Assets on Exchange Dr. Kapil Seth”s Imaging Centre Ltd. part exchanged its old X-ray machine with a new one from Rajneesh Medical Equipment”s Ltd. Net book value of the old X-ray machine was Rs. 4,68,345. However the vendor assessed its exchange value at Rs. 4,25,000 to which Dr. Kapil Seth”s Imaging Centre Ltd. agreed. The selling price of the new X-ray machine as per the company price list was Rs. 12,58,000 subject to a further discount of Rs. 12,580 in case of an outright sale deal. The discount was, however, not available for exchange case and, therefore, Dr. Kapil Seth”s Imaging Centre Ltd. paid Rs. 8,33,000 by way of cheque drawn on its Corporation Bank current account to Rajneesh Medical Equipment”s Ltd. Determine the cost at which the new X-ray machine will be recorded in the financial statements of Dr. Kapil Seth”s Imaging Centre Ltd. How will the old X-ray machine be treated?

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