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 $59 000 on 1 July 2016,what was the gain or loss on disposal?

A) Loss of $21 000.
B) Loss of $59 000.
C) Loss of $61 000.
D) Loss of $13 000.