Question - A business purchased a machine on 1 July 20X1 at a cost of $35,000. The machine had an estimated residual value of $3,000 and a life of eight years. The machine was sold for $18,600 on 31 December 20X4, the last day of the accounting year of the business. To make the sale, the business had to incur dismantling costs and costs of transporting the machine to the buyer's premises. These amounted to $1,200. The business uses the straight line method of depreciation. What was the profit or loss on disposal of the machine?