Holt Developments Ltd$.$ put an asset in service on January $1,2021.$ Its cost was $$378,000,$ its predicted service life was six years, and

its expected residual value was $$37,800.$ The company decided to use double$-$declining$-$balance depreciation. After consulting with

the company's auditors, management 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 $2023?$

Depreciation expense $ $$56,700$

b$.$ Calculate the effect of this change on retained earnings.

$\backslash$table$[[$Retained earnings will,increase,by$]]$