Chang Company has a December $31$ year end. In year $7$ it bought a piece of equipment at the start of the year for $$579,000$ and employed straight line depreciation over $5$ years with an estimated residual value of $$74,500.$ At the start of year $8$ Chang decides to change the depreciation method to double declining balance $($same life and salvage$).$ This is considered a change in accounting policy and you are asked to solve it$.$

Required $1$: What is the amount of Depreciation Expense reported at December $31$st of Year $7$ before knowing the accounting policy will change? $

Required $2$: What is the amount of Depreciation Expense to be reported for the year ended December $31$st of Year $8?$ $

Required $3$: What is the amount of Accumulated Depreciation that is retroactively recognized for year $7$ when depreciation method is changed? $

Required $4$: What is the Net Book Value of the equipment on December $31$st of Year $7$ before knowing the accounting policy will change? $

Required $5$: What is the Net Book Value of the equipment on December $31$st of Year $8?$ $

Required $6$: If Net Income has to be retroactively restated, by how much Net Income of Year $7$ will increase $($decrease$)$ when the change in accounting policy becomes effective in year $8?$