An item of movable plant and machinery is bought in February 2018 for £8,000 and used solely for trade purposes. Capital allowances are available. Compute the chargeable gain or allowable loss which arises if the item is sold in July 2020 and the sale proceeds are:

(a) £5,500

(b) £6,500

(c) £7,500

(d) £8,500.