The plant and machinery account (at cost) of a business for the year ended 31 December 20X5 was as follows:
PLANT AND MACHINERY (AT COST)
|1 Jan Balance b/f||240,000||31 Mar Transfer to disposal account||60,000|
|30 Jun Cash purchase of plant||160,000||31 Dec Balance c/f||340,000|
The 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 31 December 20X5?