A business sells an asset on 1 January for 12,000. The asset was bought exactly two years

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A business sells an asset on 1 January for £12,000. The asset was bought exactly two years previously for £24,000 and depreciation was charged over five years on the straight line method, assuming no residual value. What is the profit or loss on disposal?

a. £7,200 loss

b. £2,400 loss

c. £12,000 loss

d. £12,000 profit

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