A car was purchased by a tile retailer in May 20W9 for £30,300 (including road tax for the year to 20X0 of £300). The business has a 31 December year end. The car was traded in on the 1st August 20X2 for £15,000.
The entity's accounting policy in respect of the depreciation of cars is to apply a 25% reducing balance method, with a full year's depreciation being charged in the year of purchase and none in the year of sale.
Given this information, what was the profit/loss on the trade-in during the year ended 31st December 20X2?

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The Answer of A car was purchased by a tile retailer in May 20W9 for £30,300 (including road tax for the year to 20X0 of £300). The business has a 31 December year end. The car was traded in on the 1st August 20X2 for £15,000.
The entity's accounting policy in respect of the depreciation of cars is to apply a 25% reducing balance method, with a full year's depreciation being charged in the year of purchase and none in the year of sale.
Given this information, what was the profit/loss on the trade-in during the year ended 31st December 20X2?

A Car Was Purchased by a Tile Retailer in May