34.4 A company purchases a machine with an expected useful life of six years for $9,000. After two years of use, management revised the expected useful life to eight years. The machine is to be depreciated at 30% per annum on the reducing balance basis. A full year's depreciation is charged in the year of purchase, with none in the year of sale. During Year 4, it is sold for $3,000.

What is the profit or loss on disposal?

A

$1,000 profit B

$87 loss C

$1,410 profit

$840 profit

(2 marks)