P Ltd Sold an Item of Property Plant and Equipment

Multiple Choice

P Ltd sold an item of property plant and equipment to its subsidiary S Ltd on the following basis: cost to P Ltd $24,000.The equipment is 3 years old and had been depreciated at 10% per annum straight line.Sale Price was $20,000.The gain recorded by P Ltd on sale would be:

A) $20,000
B) $4,000
C) $3,200
D) nil