Calculating disposal loss from carrying amount and proceeds

Steps:

• Identify the carrying amount of the non-current asset at disposal date.
• Determine the net proceeds from the sale.
• Subtract proceeds from carrying amount: if negative, it's a loss.
• The result shows a $900 loss on disposal.

Why C is correct:

• Loss on disposal equals carrying amount minus net proceeds (per IAS 16), yielding $900.

Why the others are wrong:

• A: Understates the loss by $200 based on miscalculated carrying amount.
• B: Reverses loss to profit, ignoring the excess carrying amount over proceeds.
• D: Assumes profit instead of loss, contradicting the negative difference.

Final answer: C