A business purchased a new machine on 1 January 2020 for $\$ 15000$ paying $\$ 10000$ by cheque.
The balance was settled by part exchange of an old machine. This old machine had cost $\$ 12000$ on 1 January 2018 and had been expected to last for 6 years with a residual value of $\$ 2400$.
The business uses the straight-line method of depreciation.
What was the loss on the disposal of the old machine?
1 )
$1400
2 )
$3000
$3800
4 )
$4600
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