Linda, manufacturer of surgical gloves, acquired a machine for £120,000 on 1 January 2006 and depreciates it at 10% per annum, using the straight-line method with time apportionment, and assuming that scrap value would be negligible. She disposed of the machine on 31 March 2011 for £78,000 and incurred £1,000 as expense. Linda prepares her Statement of financial position annually on 31 December.

Required: 

Account for the disposal to identify the gain or loss on disposal.