A company bought a machine on 1 April 2021 for $25\,000. It was depreciated at $20\%$ per annum by the straight-line method. A full year’s depreciation is charged in the year of purchase, but none is charged in the year of sale. The machine was sold for $12\,500 on 30 June 2023. The company’s year end is 31 December. What was the profit or loss on disposal of the machine?
- A$1\,250 loss
- B$1\,250 profit
- C$2\,500 loss
- D$2\,500 profit