In September of the current year, Ewing Company exchanged an old packing machine, which costP1,200,000 and was 50% depreciated, for another used machined and paid a cash difference ofP160,000. The fair value of the old packaging machine was determined to be of P700,000. What is the cost of the machine acquired in the exchange on the books of Ewing Company?a. 860,000b. 700,000c. 760,000d. 540.000