On 31 March 2019 dixie’s business traded-in a machine(a Z-15model) which it had originally purchased on 1 April 2016 for £19,000.

On 31 March 2019 dixie’s business traded-in a machine(a Z-15model) which it had originally

purchased on 1 April 2016 for £19,000. Dixie had depreciated the Z-15 at 10% per annum

using the straight-line method. Dixie part-exchanged the Z-15 for a newer

model (the Z-18). The vendor's list price for the Z-18 was £32,000

but Dixie only paid £20,000 plus the trade-in in full settlement

Required: What was the profit or loss on the disposal of the Z-15 in

Dixie's Income Statement for the financial year to 31 March 2019

Solution YouTube: https://youtu.be/4PE96jRxPMI