A motor vehicle with a cost of $8000 is depreciated at $25\%$ per annum by the reducing balance method. After two years of depreciation, it is sold for $4000. What is the profit or loss on disposal?
- A$500 loss
- B$500 profit
- C$2000 loss
- D$2000 profit
Accounting 9706 · AS & A Level · Accounting for non-current assets