Use the information below to answer questions . Motor Vehicle Account as at 31st December 2001. Debit: Jan. 1, cost ................N1950 000 Dec.31, Addition ............ N400 000 Credit: Jan. 1, Depreciation ........N1360 000 June 30, Sales proceeds...... N700 000 The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost. What is the actual profit or loss arising from the vehicle disposed of?
A. N250 000 loss B. N50 000 loss C. N450 000 profit D. N575 000 profit
