Frey, Inc. purchased a machine for $500,000 on January 2, 2017. The machine has an estimated useful life of 5 years and a salvage value of $50,000. The machine is being depreciated using the sum-of-the-years-digits method. The December 31, 2018 asset balance, net of accumulated depreciation, should be:

Select one:

a.

$320,000

b.

$230,000

c.

$270,000

d.

$180,000

e.

$200,000