Jeng Limited disposed a fixed asset in 1999 for N2,000. The asset was purchased in 1996 at a cost of N10,000 and has been depreciated at the rate of 20% per annum using the straight line method. What is the profit or loss on the disposal asset?
A N4,000 profit
B N2,000 profit
C N2,000 loss
D N2,000 loss
Answer is C
