A company uses a particular accounting method which computes an expense as $40,000 per year. The company wants to change to a different method which computes the same expense as $56,000 per year. The company is currently computing its net income for Year Four although it has been using the original method since the start of Year One. In the current year, the company is only presenting its income statements for Years Three and Four. This is not a change in depreciation methods. Which of the following is not true? Ignore any potential tax effects. a. There should be a $32,000 reduction in the beginning retained earnings reported for Year Three. b. Expense reported for Year Three should now be $56,000. c. Expense reported for Year Four should now be $56,000. d. A cumulative effect of $48,000 should be reported in the Year Four income statement.