Assume That a Machine with a Cost of $3000 Has

Multiple Choice

Assume that a machine with a cost of $3000 has accumulated depreciation of $1400 on the date of its disposal.If it was traded-in for $2000 on a new machine and the balance of $1500 was paid in cash what is the profit or loss on disposal of the old machine? Ignore GST.

A) $1000 loss
B) $600 gain
C) $400 gain
D) $1200 loss