On 1 January 2020, Laura Ltd decided to trade in a vehicle that had been acquired by the company at a cost of $35,000 on 1 July 2018. The vehicle had been estimated to have a useful life of 4 years (no residual value). The new vehicle had a cost of $40,000. Laura Ltd was given a trade-in allowance of $15,000 and paid the balance in cash. On 1 January 2020, in relation to the trade in of the old vehicle, Laura Ltd should recognise in the profit and loss statement a: Select one: O a. Gain on trade in of $6,875 O b. Loss on trade in of $6,875 O c. Gain on trade in of $25,000 O d. Loss on trade in of $2,500