Section B 1. Gibson disposed of a car. The car originally cost 10,000 on 1st January 2017. Gibson charges 20% reducing balance depreciation on cars. A full year's depreciation is charged in the year of purchase and none in the year of disposal. The car was sold on 1st January 2020 for 4,000. What is the profit or loss on disposal? (4 marks) b) Define an asset and a liability and give an example of each. (4 marks)