Ingles Corp. changed from the straight-line method of depreciation on its plant assets acquired early in 2012 to the double-declining-balance method in 2014 because of a change in the pattern of benefits received (before finalizing its 2014 financial statements). The assets had an eight-year life and no expected residual value. Information related to both methods follows:

Net income for 2013 was reported at $270,000; income for 2014 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 2014?
(b) What is the amount of the adjustment to opening retained earnings as at January 1, 2014?
(c) What is the amount of the adjustment to opening retained earnings as at January 1, 2013?
(d) Prepare the journal entry(ies), if any, to record the adjustment in the accounting records, assuming that the accounting records for 2014 are not yet closed. If no entry is required, explain why.

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Year 2012 2013 2014 Double-Declining-BanceStraight-Line Depreciation $125,000 ,00 125,000 Depreciation $250,000 187,500 Difference $125,000 62,500 15,625 140,