A sole trader purchased a machine costing $\$ 30000$ with an estimated residual value of $\$ 5000$. It was expected to have a useful life of five years.
At the end of the fourth year, the machine was sold at a profit of $\$ 200$.
Depreciation is charged using the straight-line method. A full year’s depreciation is charged for each year the asset is owned.
What was the amount of sale proceeds?
1 )
$\$ 5200{\text{ }}$
2 )
$\$ 6200$
$\$ 10200$
4 )
$\$ 15200{\text{ }}$
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