Taxable income before depreciation is $100,000. Using the straight-line method, the current year's tax depreciation will be $10,000. Using the double-declining method, the current year's tax depreciation will be $17,000. Assuming a tax rate of 40%, what is the amount of tax payable (i) for the straight-line depreciation method, and (ii) for the double-declining depreciation method?
A.
Straight-line Double-declining $90,000 $83,000
B.
Straight-line Double-declining $36,000 $33,200
C.
Straight-line Double-declining $40,000 $33,200
D.
Straight-line Double-declining $49,800 $54,000