A business has a year end of 31 December. It purchased a non-current asset on 1 January 2020 for $\$ 100000$. The asset was depreciated using the reducing balance method at 20% per annum. It was sold for $\$ 40000$ on 1 January 2022.
What was the loss on disposal?
1 )
$\$ 20000$
$\$ 24000$
3 )
$\$ 40000$
4 )
$\$ 60000$
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