As at 31 March 2010 a manufacturer reported at £284,000 machinery which originally cost £480,000. £90,000 had been paid for a new machine on 1 July 2010 and on 1 October a machine which cost £80,000 on 1 January 2007 was sold for £36,000. Annual depreciation is at 10% of cost using the straight-line method. What is the carrying value of machinery as at 31 March 2011 and the gain or loss on the disposal of machinery?

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Carrying value Gain/Loss a £273,250 b £490,000 £265,250 £265,250 c с d £14,000 loss £14,000 gain £18,000 loss £18,000 gain