Question: Hoit Developments Ltd. put an asset in service on January 1, 2021. its cost was $288,000, its predicted service life was six years, and Its

Hoit Developments Ltd. put an asset in service on January 1, 2021. its cost was $288,000, its predicted service life was six years, and Its expected residual value was $28,800. The company decided to use double-declining-balance depreclation. After consulting with the company's auditors. managenent decided to change to straight-line depreciation in 2023, without changing either the original service life or residual value. Required: a. What is depreciation expense for 2023 ? b Calculate the effect of this change on retained earnings

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