Hannam Co. decided to change from the declining-balance method of depreciation to the straight-line method effective 1 January 20X7. The following information was provided:

Year		Net Income as Reported						Excess of Declining-Balance Depreciation over straight-Line Depreciation
	20X3*			$	(27,500	)			$	5,200
	20X4				35,800					15,600
	20X5				22,800					13,100
	20X6				53,200					7,300

*First year of operations. The company has a 31 December year-end. The tax rate is 20%. No dividends were declared until 20X7 $12,000 of dividends were declared and paid in December 20X7. Income for 20X7, calculated using the new accounting policy, was $63,100.

Required: Assuming that the change in policy was implemented retrospectively, present the retained earnings reconciliation that would appear in Hannams 20X7 statement of changes in equity. (Negative amounts should be indicated by a minus sign.)