Cox Inc. acquired a machine for $420,000 on January 1, Year 1. The machine has a salvage value of $11,000 and a 5-year useful life. Cox expects the machine to run for 10,000 machine hours. The machine was actually used for 1,500 hours in Year 1 and 1,800 hours in Year 2.
What would be the balance in the accumulated depreciation account at the end of the second year, if the straight-line method were used?
a. $256,400
b. $134,970
c. $163,600
d. $81,800