Financial accounting

Advanced Orthopaedic Pte Ltd is a private orthopaedic clinic that specialises in spinal treatment and surgery. It commenced its practice on 1 January 2016.

On 31 December 2017, AO traded in its two-year old CCTV camera system for a new IP camera system to be installed in its premise. AO paid $1,500 in cash for the trade-in and recorded a loss on trade-in of $600. Old CCTV camera system is Cost of CCTV camera system. Useful life is 5 years. Depreciation method is straight line. Salvage value is $0.

Calculate the cost of the new IP camera system with clear working and explanation.