Keanu Disposed of a Motor Vehicle on 31 December 20X7

Multiple Choice

Keanu disposed of a motor vehicle on 31 December 20X7 for £7700.He bought the vehicle on 1 January 20X6 for £12 580 and depreciated it on the reducing balance basis at 20% each year.His year end is 31 October. What was the profit or loss on the sale of this asset (to the nearest £) ?

A) Profit of £1259
B) Loss of £351
C) Profit of £351
D) Loss of £687