On January 1, 2018, Nynex Corporation acquired machinery at a cost of $600,000. Nynex adopted the straight-line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value. At the beginning of 2021, a decision was made to change to the double-declining balance method of depreciation for this machine. Assuming a 30% tax rate, the cumulative effect of this accounting change on beginning retained earnings, is

$112,800.

$78,960.

$67,200.

$0.