Machinery acquired for £720,000 was reported at £494,000 on the Statement of financial position as at 30 June 2010. A new machine was acquired for £60,000 on 1 December 2010 and another, acquired for £120,000 on 1 June 2005, was sold for £52,000 on 30 April 2011. Depreciation is calculated using the straight-line method and assuming ten years’ life, but full year’s depreciation is charged in the year of acquisition and no depreciation in the year of disposal. What is the depreciation charge in the year ended 30 June 2011 and the gain or loss on the disposal of the machinery?

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Depreciation a £74,500 b £63,500 c £78,000 C d £66,000 Gain/loss £4,000 loss £14,000 gain £60,000 loss £4,000 gain