Business Services Ltd's year end is 31 December. On 1 July 20X1, they purchased a machine at a cost of 66,608. At the time, they estimated that the machine had a useful life of 8 years and no residual value. On 1 January 20X5 Business Services Ltd sold the machine for 36,800.

Business Services Ltd have a policy of charging depreciation based upon the number of months an asset has been owned.

Did Business Services Co make a profit or a loss on the sale of the machine? Answer 1Choose...ProfitLoss

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What was the value of the profit or loss? Answer 2

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