$2.$ Darlga $($Pty$)$ Ltd sold Machinery which it had originally purchased for P$740,000$ for proceeds of P$400,000$ on $1$ January $2017.$ Capital allowances of P$380,000$ have been claimed in respect of the asset. Darlga Ltd purchased a replacement asset for P$520,000$ on $13$ March $2017.$

Required

$($a$)$ Calculate the base cost of the new asset after applying rollover relief? $(5$ marks$)$

$($b$)$ Explain what roll over relief is and conditions to utilize it$.(5$ marks$)$