A motor car costing D100,000 was depreciated at 20% per annum by the diminishing balance method. Two years later, it was sold for D60,000. Using the information, the net profit or loss on the sale was?

A. D 40,000 profit
B. D 4,000 profit
C. D 4,000 loss
D. D 40,000 loss

Correct Answer: Option C

C. D 4,000 loss