Question

A machinery with original cost of ₹ 10,00,000 and Nil Salvage value acquired on 1st April 2017 with 4 years useful life was depreciated using Straight Line Method. It was decided to sell the machinery on 1st October 2020 for 1,20,000. What shall be the gain or (loss) on the sale of Machinery?

A Loss of 1,30,000
B Loss of 5,000
C Gain of 1,20,000
D Gain of 5,000
E Gain of 1,30,000
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