Ingles Corp. changed from the straight-line method of depreciation on its plant assets acquired early in 2009 to the double-declining-balance method in 2011 because of a change in the pattern of benefits received (before finalizing its 2011 financial statements). The assets had an eight-year life and no expected residual value. Information related to both methods follows:

Net income for 2010 was reported at $270,000; net income for 2011 before depreciation and income tax is $300,000.
Assume an income tax rate of 30%.
Instructions
The change from the straight-line method to the double-declining-balance method is considered a change in estimate.
(a) What net income is reported for 2011?
(b) What is the amount of the adjustment to opening retained earnings as at January 1, 2011?
(c) What is the amount of the adjustment to opening retained earnings as at January 1, 2010?
(d) Prepare the journal entry(ies), if any, to record the adjustment in the accounting records, assuming that the accounting records for 2011 are not yet closed.

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Year 2009 2010 2011 Double-Declining- Balance Depreciation $250,000 187,500 140,625 Straight-Line Depreciation $125,000 125,000 125,000 Difference $125,000 62,500 15,625