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A business purchased a non-current asset on 1 January 2011 for $25,000. It had an estimated life of six years and an estimated residual

 

A business purchased a non-current asset on 1 January 2011 for $25,000. It had an estimated life of six years and an estimated residual value of $7,000. The asset was eventually sold after three years on 1 January 2014 to another trader who paid $17,500 for it. What was the profit or loss on disposal, assuming that the business uses the straight line method for depreciation?

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