Brown Ltd Purchased a Machine on the First Day of the Financial

Multiple Choice

Brown Ltd purchased a machine on the first day of the financial period,1 July 2015,for $100 000.The machine was depreciated using the reducing balance method and a rate of 20 per cent.
-It was sold on 1 July 2016.If the machine was sold for $60 000,what was the gain or loss on disposal?

A) Loss of $20 000
B) Loss of $40 000
C) Gain of $60 000
D) Gain of $20 000