On January 1, 2003, ABC Co. purchased a computer system with a four-year useful life and no residual value for $200,000. The machine was depreciated by an accelerated method for book and tax purposes. The machine s carrying amount was $80,000 on December 31, 2004. On January 1, 2005, ABC changed to the straight-line method for financial statement purposes. ABC s income tax rate is 30 percent. On its 2005 income statement, what amount should ABC report as the cumulative effect of this change?
d) $ 0