Tanner Ltd Purchased an Item of Equipment on the First

Multiple Choice

Tanner Ltd purchased an item of equipment on the first day of the financial period,1 July 2015,for $200 000.The equipment was depreciated using the reducing balance method and a rate of 40 per cent.It was sold on 1 July 2017.
-If the machine was sold for $65 000,what was the gain or loss on disposal?

A) Gain of $14 000
B) Gain of $10 000
C) Loss of $7000
D) Gain of $7000