Use the following information for questions 3 and 4. On January 1, 2013, ABC Corporation acquired machinery at a cost of $600,000. ABC 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 2016, a decision was made to change to the double-declining balance method of depreciation for this machine. Question 3) The cumulative effect of this accounting change on beginning retained earnings, is: 1. $67,200 II. $0 W. $78,960 IV. 5112.800