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)

20X5	$	20X5	$
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?

Select one:

a. $61,000

b. $68,000

c. $55,000

d. $64,000