A business’s accounting year-end falls on 31 March. It bought a car on 1 April 2014 for $15000. The car was then sold on 30 September 2017 for $5000. Depreciation is applied at 20% per annum. In the year of purchase, a full year’s depreciation is charged. No depreciation is charged in the year of sale. What was the profit or loss on disposal?
- Aloss of $500
- Bloss of $1000
- Cprofit of $500
- Dprofit of $1000