How much lower would the total amount of accumulated


On June 30, 2011, Smith Company acquired a machine with a cost of $1,350,000, a $120,000 salvage value, and a 5-year useful life. The machine is being depreciated using the straight-line method. The firm is interested in the effect that double-declining balance depreciation would

have had. How much lower would the total amount of accumulated depreciation under the straight-line method be than the total amount of accumulated deprecation under the double- declining balance method at December 31, 2012?

a. $ 441,500

b. $ 348,750

c. $ 333,000

d. $ 225,250

e. None of the above.

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