Assume that a machine with a cost of $90 000 has accumulated depreciation of $48 000 on the date of its disposal. What is the profit or loss on disposal of the old machine if it was traded-in for $40 000 on a new machine? (Ignore GST)

Select one:

a.

$2,000 loss

a. $2,000 loss

b.

$8,000 gain

b. $8,000 gain

c.

$42,000 loss

c. $42,000 loss

d.

$40,000 loss