Red Corp Constructed a Machine at a Total Cost of $70

Multiple Choice

Red Corp. constructed a machine at a total cost of $70 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the straight-line method. The residual value is expected to be $4 million. At the beginning of 2018, Red decided to change to the sum-of-the-years'-digits method. Ignoring income taxes, what will be Red's depreciation expense for 2018?

A) $4.80 million.
B) $5.40 million.
C) $6.60 million.
D) $11.55 million.