WAEC Financial Accounting 2001 Question 34

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 of the asset?

1. A.N4,000 profit
2. B.N2,000 profit
3. C.N2,000 loss
4. D.N4,000 loss.