Hannam Co.decided to change from the declining balance method of depreciation to the straight-line method effective January 20x7. The following information was provided: Net Excess of Declining-Balance Incone as Depreciation over straight-Line Year Reported Depreciation 20x3. $120, 200) $ 4,900 20x4 34,000 14,700 20x5 21, Bee 12,300 26x6 50,900 6,800 "First year of operations. The company has a 31 December year-end. The tax rate is 20%. No dividends were declared until 20x7; $14,800 of dividends were declared and paid in December 20X7 Income for 20x7, calculated using the new accounting policy, was $77700. 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 11 December 20X7 Retained earnings, 1 January 20x7 $ 77,700 Efect of change in accounting policy Retained earnings, 1 January as rostited 77,700 Plus: Net income Less Dividends declared 14.800 Retained samnings, 31 December 20x7 $ 92,500