Tanner Ltd Purchased an Item of Equipment on the First

Tanner Ltd purchased an item of equipment on the first day of the financial period, 1 July 2018, for $200 000. The equipment was depreciated using the reducing balance method and a rate of 40 per cent. It was sold on 1 July 2020. If the machine was sold for $59 000 on 1 July 2019, what was the gain or loss on disposal?

A) Loss of $21 000.
B) Loss of $59 000.
C) Loss of $61 000.
D) Loss of $13 000.