Disposal and part-exchange question

Safiya depreciates her machinery at a rate of 20% per annum on a reducing balance basis. She provides a full year’s depreciation in the year an asset acquired, and no provision is made in the year of disposal.

At 1 November 2003, the cost of Safiya’s machinery was $140,900, and the NBV was $94,750.

During the year to 31 October 2004, a machine which had cost $35,000 and had been depreciated for 4 years was traded in for a new machine. The new machine cost $50,000, and the trade in value was $14,000. At 21 October 2004 the balance of the cost of the new machine was still outstanding.

a. Calculate the profit or loss on the machine traded in.
b. Calculate the depreciation charge for machinery for the year to 31 October 2004.