An item of movable plant and mach inery is bought in February 2015 for £8,000 and used solely for trade purposes. Capital allowances are available in relation to this item. Compute the chargeable gain or the allowable loss which arises if the item is sold in July 2017 and the sale proceeds are:

(a) £5,500

(b) £6,500

(c) £7,500

(d) £8,500.