1. The follow account totals appear in the Balance Sheet of the Light Saber Ltd:

Equipment: Rs 1,20,000

Accumulated Depreciation: Rs 45,000

If the equipment is sold to a third party for Rs 55,000, what amount of gain or loss will Light Saber Ltd record in their books?

1. Rs 20,000 gain.
2. Rs 20,000 loss.
3. Rs 40,000 loss.

Rs 40,000 gain