17 A car which cost £14,000 is part-exchanged for a new car exactly three years after its purchase. Cars are depreciated on the straight line basis over five years, assuming a residual value of 10% of the purchase price. If the part-exchange value of the car was

£4,000, what profit or loss would be recorded in the income statement in the year of disposal?

(a) £2,440 loss

(b) £1,600 loss

(c) £440 profit

(d) £2,600 profit