WAEC Financial Accounting 2009 Question 29

Use the following information to answer questions 29 and 30.
A motor car costing D100,000 was depreciated at 20% per annum by the diminishing balance method. Two years later, it was sold for D60,000.

The net profit or loss on the sale was

1. A.D 40,000 profit
2. B.D 4,000 profit
3. C.D 4,000 loss
4. D.D 40,000 loss