A machine costing 600,000, with an expected useful life of 10 years, and an estimated residual value of 50,000, was purchased by Desdemona Ltd in January 2014. Depreciation is calculated on the diminishing balance method at the rate of 30%, with a full years depreciation charged in both the year of purchase and the year of disposal. The asset was sold in year 5 for 50,000.

The approximate resulting loss arising on the disposal is:

42,000 loss

250,000 loss

51,000 loss

275,000 loss