Metal cutter

Focus plc bought a metal cutter on 1/3/X1 that used traditional cutting techniques (a big saw!). The cutter had an expected useful life of 10 years as at the date of purchase. A new generation of laser cutters has meant that the traditional cutter is out of date. Focus plc has had to purchase a new laser cutter in order to remain competitive. The old machine is still in perfect working order and was advertised for sale on 17/7/X6. No offers have yet been received although an industrial museum has expressed an interest in the machine if it were offered as a donation. It would cost Focus plc 2,000 to deliver the machine to the museum. A local scrap dealer has turned the machine down because he fears it might have become contaminated by toxic waste.

The accountant proposes leaving the old machine on the statement of financial position at its net book value of 72,000 for the moment.

State whether you agree with the accountants proposal regarding the matter mentioned above. You should explain your reasons for agreeing or disagreeing and explain any alternative treatments that you believe the accountant should use.