Lisa Limited and Jisoo Pty Limited entered into a joint operation, BPink, three years ago to manufacture and distribute branded clothing. The joint operation agreement indicates the parties will share output, contributions and costs, and hold the joint operation assets as tenants in common, with the respective interests being 40% Lisa Limited and 60% Jisoo Pty Limited. Lisa Limited contributed the plant which has a book value of $220,000 and a fair value at the date of contribution of $286,000 whilst Jisoo Pty Limited contributed cash of $429,000. Lisa Limited chose not to revalue their remaining interests in the contributed assets in their separate records. Three years after commencing the joint operation, production commenced at the start of the following financial year. The joint operators agreed to depreciate / amortise their interest in the assets of the joint operation in their own books. The joint operation manager has indicated the remaining useful life of the plant at the commencement of production is 10 years.

Assuming straight line method applies to the determination of depreciation of the plant, how much depreciation will Lisa Limited record in the first year of production?

a. $28,600

b. $22,000

c. $8,800

d. $13,200