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 20X3* 20X4 20x5 20X6 Net Income as Reported $(35, 800) 38,300 24,300 56,800 Excess of Declining-Balance Depreciation over straight-Line Depreciation $ 5,500 16,500 13,800 7,700 *First year of operations. The company has a 31 December year-end. The tax rate is 20%. No dividends were declared until 20X7; $13,800 of dividends were declared and paid in December 20X7. Income for 20X7, calculated using the new accounting policy, was $72,600. Required: Assuming that the change in policy was implemented retrospectively, present the retained earnings reconciliation that would appear in Hannam's 20X7 statement of changes in equity. (Negative amounts should be indicated by a minus sign.) Hannam Company Statement of Changes in Shareholder's Equity Retained Earnings Section Year Ended 31 December 20X7 Retained earnings, 1 January 20X7 Effect of change in accounting policy Retained earnings, 1 January as restated Retained earnings, 31 December 20x7