Question: 22 abc ltd. has entered into a binding agreement with xyz ltd. to buy a custom-made machine amounting to $ 4,00,000. as on 31st march,

22 abc ltd. has entered into a binding agreement with xyz ltd. to buy a custom-made machine amounting to $ 4,00,000. as on 31st march, 2018 before delivery of the machine, abc ltd. had to change its method of production. the new method will not require the machine ordered and so it shall be scrapped after delivery. the expected scrap value is 'nil'. show the treatment of machine in the books of abc ltd

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