Paul’s year end is 31 December. On 1 January 2020, he purchased a non-current asset costing $10000. He disposed of it on 1 January 2021 for $5850. Paul normally charges depreciation at $10\%$ per annum. He charges a full year’s depreciation in the year the asset is acquired and no depreciation in the year it is sold. He did not make any depreciation allowance for this non-current asset. What was the impact of this mistake on Paul’s profit for the year ended 31 December 2021?
- A$1000 higher
- B$1000 lower
- C$1500 higher
- D$1500 lower