X Co issued 10,000 share appreciation rights to each of its 12 directors on 1 July 20X5. It has correctly accounted for this as a cash-settled share-based payment . The rights had a fair value of $4 each at 1 July 20X5 and vest after four years if the directors remain employed for that period. At 30 June 20X6 the rights have a fair value of $5.50 each and no directors have left or are expected to leave. What expense is recognised in the financial statements of X Co in the year ended 30 June 20X6?

A) $120,000

B) $165,000

C) $480,000

D) $660,000