On January 2, 2009, McKell Company Acquired Machinery at a Cost

Multiple Choice

On January 2, 2009, McKell Company acquired machinery at a cost of $640,000. This machinery was being depreciated by the double-declining-balance method over an estimated useful life of eight years, with no residual value. At the beginning of 2011, McKell decided to change to the straight-line method of depreciation. Ignoring income tax considerations, the cumulative effect of this accounting change is

A) $0.
B) $120,000.
C) $130,000.
D) $280,000.