As at 31 December 2010 a manufacturer reported at £424,000 machinery which had originally cost £840,000. A machine was acquired for £80,000 on 1 April 2011 and on 1 July 2011 a machine acquired for £120,000 on 1 April 2008 was sold for £20,000. Machinery is depreciated at 40% per annum on the reducing balance method with time apportionment. What is the carrying value (cost less accumulated depreciation) as at 31 December 2011 and the gain or loss on the disposal of machinery?

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Carrying value Gain/loss a £286,208 b £287,936 C £334,208 d £292,256 £4,192 gain £1,856 gain £4,448 gain £4,192 loss