A motor vehicle bought for N16,000 was estimated to have a useful life span of 4 years and a scrap of N2,000. If the vehicle is sold for N6,000 at the end of third year, what is the profit or loss on sale?

  • A N1,000 profit
  • B N500 profit
  • C N500 loss
  • D N1,000 loss

The correct answer is B. N500 profit

No explanation given
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