Question: A company sells a 3 years old machine which is recorded at cost of acquisition of 15,000.00 EUR and got depreciated following straight line method

A company sells a 3 years old machine which is recorded at cost of acquisition of 15,000.00 EUR and got depreciated following straight line method over 5 years under consideration of a residual value of 5,000.00 EUR at 12,000.00 EUR gross selling price. How much is the profit/loss on disposal?

1. 3,000.00 EUR.

2. -4,000.00 EUR.

3. 1,000.00 EUR.

4. 6,000.00 EUR.

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