A business has a year end of 31 December. Its motor vehicles are depreciated over four years by the straight-line method. In the year of purchase, depreciation for a full year is charged, whereas 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. The motor vehicle was then sold for $5000 on 31 December 2019. What was the profit or loss on disposal?
- A$1000 loss
- B$1000 profit
- C$2500 loss
- D$2500 profit