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 calculated 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