Hannam Ca. decided to change from the declining balance method of depreciation to the straight-line method effective 1 January 20X7. The following information was provided: "First year of operations. The company has a 31 December year-end. The tax rate is 20%. No dividends were declared until 207;$10,000 of dividends were declared and paid in December 207. Income for 207, calculated using the new accounting policy, was $52,600. Required: Hannam's 207 statement of changes in equity. (Negative amounts should be indicated by a minus sign.) Required: Assuming that the change in policy was implemented retrospectively, present the retained earnings reconciliation that would appear in Hannam's 207 statement of changes in equity. (Negative amounts should be indicated by a minus sign.)