Question: On January 2, 2007, Union Co. purchased a machine for $264,000 and depreciated it by the straight-line method using an estimated useful life of eight

On January 2, 2007, Union Co. purchased a machine for

$264,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value.

On January 2, 2010, Union determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $24,000. An accounting change was made in 2010 to reflect the additional data. The accumulated depreciation for this machine should have a balance at December 31, 2010, of

a. $176,000

b. $160,000

c. $154,000

d. $146,000

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