An equipment costing N60,000 was bought on 1st January 1991. Depreciation was provided at 20 percent annually on straight line method. It was straight line method. it was sold on 30th June 1994 for N15,750. In the year of sale, profit was
Reduced by N15,750
Increased by N15,750
Reduced by N12,000
Increased by N2,250
Reduced by N2,250
Correct answer is C
No explanation has been provided for this answer.