Question 5 (10 marks) 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 Net Excess of Declining-Balance Income as Depreciation over straight-Line Year Reported Depreciation 2015 S(58,200) $ 8,400 2016 57,400 25,200 2017 36,400 21,000 2018 85,000 11,800 *First year of operations The company has a Dec 31 year-end. The tax rate is 20%. No dividends were declared until 2019, $39,200 of dividends were declared and paid in Dec 2019 Income for 2019, calculated using the new accounting policy, was $206,400 after income tax Required: a) Calculate the earnings correction that Moncton Developments Ltd. must show in the 2019 financial statements I 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 Development's statement of changes in equity