On January 1, Year 7, Colorado Corp. purchased a machine having an estimated useful life of 8 years and no salvage

value. The machine was depreciated by the double-declining-balance (DDB) method for both financial statement and income tax reporting. On January 1, Year 9, Colorado justifiably changed to the straight-line method for both financial statement and income tax reporting. Accumulated depreciation at December 31, Year 8, was $525,000. If the straight-line method had been used, the accumulated depreciation at December 31, Year 8, would have been $300,000. The retroactive adjustment to the accumulated depreciation account on January 1, Year 9, as a result of the change in depreciation method is 

 A.

$525,000

 B.

$0

 C.

$300,000

 D.

$225,000

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