The business’s financial year ends on 31 December. Its motor vehicles are depreciated over four years by the straight-line method. In the year of purchase, depreciation for a complete year is charged, while no depreciation is charged in the year of sale. A motor vehicle bought on 1 July 2016 for $18000 had an estimated residual value of $4000. It was sold on 31 December 2019 for $5000. What profit or loss resulted from the disposal?
- A$1000 loss
- B$1000 profit
- C$2500 loss
- D$2500 profit