Ravi’s financial year finishes on 30 April. On 1 May 2020, Ravi purchased a motor vehicle for $8000, and on 1 May 2022 he disposed of it for $4050. Depreciation is charged using the reducing balance method at 20% per annum. What would be entered in the income statement for the year ended 30 April 2023 in respect of the disposal of the motor vehicle?
- A$750 loss
- B$750 profit
- C$1070 loss
- D$1070 profit