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In the financial year ended 31 October 2009, Edita sold a car for $5,600. The car had been bought in January 2006 for $14,000. Edita
In the financial year ended 31 October 2009, Edita sold a car for $5,600. The car had been bought in January 2006 for $14,000. Edita depreciates motor vehicles on the reducing balance basis at a rate of 25% per annum. She charges a full years depreciation in the year an asset is bought, and no depreciation in the year it is sold. What is the profit or loss on disposal of the car? (Round up intermediate decimal figures to whole numbers)?
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