Dr. Kapil Seth’s Imaging Centre Ltd. part exchanged its old X-ray machine with a new one from Rajneesh Medical Equipments Ltd.
Net book value of the old X-ray machine was ₹4,68,345. However the vendor assessed its exchange value at ₹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 ₹12,58,000 subject to a further discount of ₹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 ₹8,33,000 by way of cheque drawn on its Corporation Bank current account to Rajneesh Medical Equipments 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?