The Max Company began its operations on January 1, 2016, and used an accelerated method of depreciation for its machinery and equipment. On January 1, 2018, Max adopted the straight-line method of depreciation. The following information is available regarding depreciation expense for each method:

Year Accelerated Depreciation Straight-Line Depreciation

2016 $175,000 $150,000

2017 $200,000 $180,000

2018 $245,000 $230,000

What is the before-tax cumulative effect on prior years' income that would be reported as of January 1, 2018, due to changing to a different depreciation method?

a. 0 b.decrease 45000 c.increase 45000. d.increase 60,000