7. The balances on the equipment and accumulated depreciation accounts of Tomato plc at 31 December 20X9 and 31 December 20X8 are as follows: Equipment Accumulated depreciation 31/12/X9 320 000 156 000 31/12/X8 During the year ended 31 December 20X9: Equipment costing 50 000 was purchased. Equipment was sold for 7 500 cash. Depreciation expense on equipment amounted to 60 000. The profit or loss on disposal of equipment amounts to: 300 000 120 000

7. The balances on the equipment and accumulated depreciation accounts of Tomato plc at 31 December 209 and 31 December 208 are as follows: During the year ended 31 December 20x9: - Equipment costing 50000 was purchased. - Equipment was sold for 7500 cash. - Depreciation expense on equipment amounted to 60000. The profit or loss on disposal of equipment amounts to