Moncton Developments Ltd. decided to change from the declining-balance method of depreciation to the straight-line method effective 1 January 2019. This change will be implemented retrospectively. The following information was provided:

Year	Net Income as Reported				Excess of Declining-Balance Depreciation over straight-Line Depreciation
2015*		$	(58,200)			$	2,200
2016			57,400				6,600
2017			36,400				5,500
2018			85,000				3,900

*First year of operations. The company has a Dec 31^st year-end. The tax rate is 20%. No dividends were declared until 2019 $78,400 of dividends were declared and paid in Dec 2019. Income for 2019, calculated using the new accounting policy, was $612,800 after income tax.

Required: a) Calculate the earnings correction that Moncton Developments Ltd.. must show in the 2019 financial statements.

b) Prepare the 2019 entry to record the change in accounting policy.

General Journal
Date	Account Titles and Explanation	Debit	Credit

c) Present the retained earnings reconciliation that would appear on Moncton Developments statement of changes in equity.

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