The Development cost account appearing on the year-end Trial Balance includes research expenses of £312,500. £280,000 of this amount had been incurred in prior years. Which of the following is the correct accounting entry for correcting this error?

(a) Dr Research expenses a/c £312,000, Cr Development cost a/c £312,000

(b) Dr Statement of income £32,500, Dr Changes in equity £280,000, Cr Development cost a/c £312,500

(c) Dr Statement of income £312,500, Cr Development cost a/c £312,500

(d) Dr Statement of changes in equity £312,500, Cr Development cost a/c £312,500