NNOSHI TRADERS

Notes to the financial statements for the financial year ended 30 June 20.20

Property, plant, equipment

	Vehicles
	R
Carrying amount:
Beginning of year		94 600
Cost		172 000
Accumulated depreciation		(77 400)
Additions		60 000
Depreciation		(29 738)
Disposals		?
Cost		25 000
Accumulated depreciation		?
Carrying amount:
End of year
Cost
Accumulated depreciation

Additional information

(a) The vehicle that was sold was an old van that was bought on 1 January 20.17 for R45 000. On 31 March 20.20 the van was sold for R25 000 cash.

(b) Vehicles are depreciated at 15% per annum on the straight-line method.

The profit/loss on the sale of the van will be?

A.

A loss on sale of vehicle of R23 062

B.

No profit or loss on sale of vehicle

C.

A profit on sale of vehicle of R1 938

D.

A loss on sale of vehicle of R1 938

E.

A profit on sale of vehicle of R25 000