Adams mowing Limited purchased a group of new lawnmowers for $20,000 at 1 July 2020. As the accountant of the business, you have estimated that the mowers are to last five years and to have $500 residual value at that point. The entitys business plan projects cutting 5,000 lawns over the five years, with per-year projections of 500, 1,000, 1,200, 1,800 and 500 lawns over the five years.

If the 52 per cent reducing balance method is used, accumulated depreciation will be $19,500 at the end of the fifth year. Suppose that, on the first day of the sixth year, all the lawnmowers are sold as junk for $100 cash in total. Ignoring income taxes, calculate the loss on sale that would be recorded that day.