Question 3 Hannam Co. decided to change from the declining-balance method of depreciation to the straight-line method effective 1 January 2017. This change will be implemented retrospectively. The following information was provided: Net Excess of Declining-Balance Income as Depreciaon over straight-Line Year Reported Depreciation 2013* $(29,100) $ 4,200 2014 28,700 12,600 2015 18,200 10,500 2016 42,500 5,900 *First year of operations. The company has a Dec 319'" year-end. The tax rate is 20%. No dividends were declared until 2017; $19,600 of dividends were declared and paid in Dec 2017. Income for 2017, calculated using the new accounting policy, was $103,200. Required: a) Calculate the earnings correction that Hannam Co. must show in the 2017 financial statements. 0) Prepare the 2017 entry to record the change in accounting policy. General Journal Date Account Titles and Explanation c) Present the retained earnings reconciliation that would appear on Hannam's statement of changes in equity