Hannam Co$.$ decided to change from the declining$-$balance method of depreciation to the straight$-$line method effective $1$ January $20$X$7.$ The following information was provided:$*$First year of operations.

The company has a $31$ December year$-$end. The tax rate is $20\%.$ No dividends were declared until $207$;

$$13,500$ of dividends were declared and paid in December $207.$ Income for $207,$ calculated using the

new accounting policy, was $$71,000.$

Required:

Assuming that the change in policy was implemented retrospectively, present the retained earnings

reconciliation that would appear in Hannam's $20$X$7$ statement of changes in equity. $($Negatlve amounts

should be Indlcated by a minus sign.$)$