A business whose year-end is 31 December bought a motor vehicle on 1 January 2015 at a cost of $24000. The motor vehicle had an estimated useful life of four years, and its estimated residual value after four years was $8000. The business writes off motor vehicles at 25% per annum by means of the reducing balance method. In the year of disposal, no depreciation is charged. The motor vehicle was disposed of on 31 July 2018 for $12000. What was the profit on the sale of the motor vehicle?
- A$1875
- B$4000
- C$5250
- D$6000