On January 1, 2016, Manchester Ltd

Multiple Choice

On January 1, 2016, Manchester Ltd. purchased a machine for $ 495,000 and depreciated it using the straight-line method with an estimated useful life of eight years with no residual value. On January 1, 2019, Plover determined that the machine had a useful life of only six years from the date of acquisition, but will have a residual value of $ 45,000. An accounting change was made in 2019 to reflect these additional facts. At December 31, 2020, the accumulated depreciation account for this machine should have a balance of

A) $ 273,750.
B) $ 281,250.
C) $ 361,875.
D) $ 375,000.