depreciation

The plant and machinery at cost account of a business for the year ended 30 June 20X4 was as follows:

20X3 20X3
1 Jul Balance 240,000$ 30 Sep Transfer disposal account 60,000$

20X4 20X4
1 Jan Cash – purchase of plant 160,000$ 30 Jun Balance 340,000$
400,000 400,000

he company’s policy is to charge depreciation at 20% per year on the straight line basis, with
proportionate depreciation in the years of purchase and disposal.
What should be the depreciation charge for the year ended 30 June 20X4?

A $68,000
B $64,000
C $61,000
D $55,000
(2 marks)