Bay Sheetmetal Ltd owns a cutting machine that has an effective life of 5 years. The written down value of the cutting machine on 19 May 2022 is $14,320. On 19 May 2022, the company sold the cutting machine for $10,000. Does Bay Sheetmetal Ltd have to include any amount into assessable income or is it able to claim a deduction for the disposal of the cutting machine?

a. A deduction will be allowed of $2,864

b. An amount will need to be included in assessable income of $2,864

c. An amount will need to be included in assessable income of $4,320

d. A deduction will be allowed for $4,320