During the Financial Year Ended 31 July 2021, O R

Multiple Choice

During the financial year ended 31 July 2021, O R Egon Enterprises, a mining company, sold its head office building for £25m. The head office building had originally been acquired twenty years ago at a cost of £15m. O R Egon Enterprises depreciate buildings on the straight-line basis over 50 years. How much profit on this transaction will O R Egon Enterprises recognise as revenue in its statement of profit or loss for the financial year ended 31 July 2021?

A) £Nil
B) £10m
C) £16m
D) £25m