A company buys a machine on 31 August 20X0 for $22,000. It has an expected life of seven years and an estimated residual value of $1,000. On 30 June 20X4 the machine is disposed of for $9,000. The company's year end is 31 December. Its accounting policy is to charge depreciation using the straight line method with a proportionate charge in the years of acquisition and disposal.

What is the profit or loss on disposal of the machine which will appear in the statement of profit or loss for the year ended 31 December 20X4?

Group of answer choices

No gain or loss

$1500 loss

$1500 gain