WAEC Financial Accounting 2022 Question 19

Use the following information to answer questions 17 to 19
Kako Ltd bought a machine for D 1,200,000 on 1st January 2018. Depreciation was provided annually at a rate of 10% using the diminishing balance method. The machine was sold for D 880,000 on 31st December 2021.
The profit or loss on disposal of the machine was

1. A.D 320,000 loss
2. B.D 280,000 profit
3. C.D 92,680 profit
4. D.D 87,480 loss