The following information was extracted from the accounting records of Kumkani Traders:

Balances at 1 November 20.9
	R
Equipment: Cost	280 000
Accumulated depreciation: Equipment..	(164 800)

Additional information

(a) At the beginning of the financial year, 1 November 20.9, Kumkani Traders decided to upgrade some of its processes by selling old printing equipment for R31 000 cash. The machine was bought on 31 October 20.4 for R180 000. Depreciated was provided for at 15% per annum on the straight-line method.

(b) On 1 December 20.9 Kumkani Traders bought 3D printing equipment for R145 600 on credit from Fourth Dimension. Depreciation on the new machine must be provided for at 25% per annum on the diminishing balance method.

Which one of the following alternatives represents the correct amount to be disclosed as profit or loss on sale of the old printing equipment?

• A.

  Profit on sale of equipment will be R15 800.

• B.

  Profit on sale on equipment will be R22 000.

• C.

  Loss on sale of equipment will be R14 000.

• D.

  Profit on sale on equipment will be R14 000.

• E.

  Loss on sale of equipment will be R40 000.