Machinery acquired for £720,000 was reported at £494,000 on the Statement of financial position as at 30 June 2010. A machine was acquired for £60,000 on 1 December 2010 and another acquired for £120,000 on 1 June 2005 was sold for £52,000 on 30 April 2011. Depreciation is calculated at 10% of cost per annum with time apportionment. Calculate the depreciation in the year ended 30 June 2011 and the gain or loss on disposal of machinery.

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Depreciation a £74,500 b £73,500 C £85,500 d £75,000 Gain/Loss £4,000 gain £3,000 gain £3,000 loss £8,000 loss