The book value of an asset at the beginning of a year is ₦150,000. The depreciation charge for the year is ₦37,500, and the asset is sold at the end of the year for ₦100,000. What is the profit or loss on disposal?

Net book value at end of year = ₦150,000 − ₦37,500 = ₦112,500. Sale proceeds = ₦100,000. Since proceeds (₦100,000) are less than NBV (₦112,500), there is a loss on disposal = ₦112,500 − ₦100,000 = ₦12,500. Therefore, the correct answer is a loss of ₦12,500. Option A is correct; the answer should be A. Profit/loss = Proceeds − NBV = ₦100,000 − ₦112,500 = −₦12,500 (a loss).