A business purchased a crane for $40 000 on 1 January 2001. The crane was depreciated at
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A business purchased a crane for $40 000 on 1 January 2001. The crane was depreciated at the rate of 30% per annum using the reducing-balance method. The crane was sold on 31 December 2003 for $7750. What was the profit or loss on disposal?
A. $3750 loss
B. $3750 profit
C. $5970 loss
D. $5970 profit
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