Q. 3 a) b) A company, whose business is to buy and sell machines, sold a machine for Rs. 30,000 (original cost of the machine was Rs. 20,000) during 2012. Required: Disclose the above transaction in the statement of comprehensive income. A machine is purchased for Rs. 4,000 in cash. The machine was delivered on the same day as the payment was made. It is expected to be used over a 4-year period to make widgets that will be sold profitably. At the end of the 4-year period, the asset will be scrapped. Required: Discuss how the purchase of the machine should be recognized and measured. The definitions and recognition criteria is also required.