Bad Company Ltd has some machinery that it acquired in 2021 at a cost of $4 000 000. In 2022 it is concerned about high reported profits—the labour union is considering pushing for additional wages, but Bad Company Ltd does not want to pay them and is consequently considering ways to reduce profits. Recently, it has acquired some identical machinery to that acquired in 2021. The machinery has been acquired in a liquidation sale of a business that is in the hands of the bank (owing to the business defaulting on a loan) and the cost is $500 000. After this purchase, Bad Company Ltd writes down to $500 000 the machinery acquired in 2021 at a cost of $4 000 000. Is this an appropriate course of action?