P Ltd Sold an Item of Property,plant and Equipment to Its

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 three 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) $4000.
C) $3200.
D) $0.