A business has a year end date of 31 December. It bought a motor vehicle on 1 January 2017 for $15000. The motor vehicle was then sold on 31 March 2019 for $8000. Depreciation is worked out at 20% each year by the reducing balance method on a month by month basis. What is the accumulated depreciation and profit or loss on disposal of the motor vehicle?
- AAccumulated depreciation $5400; $1600 loss
- BAccumulated depreciation $5400; $1600 profit
- CAccumulated depreciation $5880; $1120 loss
- DAccumulated depreciation $5880; $1120 profit