A lorry is purchased on 30 June 2014 for £10,000. It is to be depreciated using one of the following two methods of depreciation:

(a) Straight line, on a monthly basis, with an expected scrap value of £2,000 and a lifespan of five years.

(b) Reducing balance, using 30%, with a full year’s depreciation charged in the year of purchase but none in the year of sale.

If the lorry is sold for £3,900, on 31 December 2017, calculate the profit or loss on disposal using both of the above options for depreciation.