Milton Plc, which has an accounting year end of 31 December, has constructed an offshore oil rig. It is brought into use on 1 April 2017. The cost of construction is £600 million. The rig has an estimated 25 year life. At the end of that life the company is required by law to remove the rig and restore the sea beThe cost of removal and restoration is estimated as £200 million. The discount factor for 10% (the company’s cost of capital) in 25 years is 0.09. The depreciation charge for the year ended 31 December 2017 will be: