Ventura Corporation purchased machinery on January 1, 2012 for $840,000. The company used the sum-of-the-years-digits method and no salvage value to depreciate the asset for the first two years of its estimated six-year life. In 2013, Ventura changed to the straight-line depreciation method for this asset. The following facts pertain: 2012 2013 Straight-line $140,000 $140,000 Sum-of-the-years-digits 240,000 200,000 1. Ventura is subject to a 40% tax rate. The cumulative effect of this accounting change on beginning retained earnings is a. $180,000. b. $160,000. c. $96,000. d. $0