For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,560,000. Its useful life was estimated to be six years with a $160,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method.The effect of this change on depreciation for each year is as follows:

Required:1. Will Clinton apply the straight-line method retrospectively or apply the straight-line method prospectively?2. Prepare any 2021 journal entry related to the change.

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($ in thousands) Declining Balance $ 853 Year Straight-Line Difference $ 400 $453 2018 569 2019 400 169 2020 400 379 (21) $1,801 $1,200 $601