A machine acquired for £400,000 on 1 July 2008 and depreciated at 25% p.a. using the reducing instalment method was sold for £112,000 on 30 April 2011. Depreciation is time apportioned. Expenses of disposal amounted to £1,500. What is the gain or loss on disposal of the machine to be reported in the Statement of income?

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a £67,625 loss b £66,125 loss £56,750 gain d £58,250 loss U