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. Briefly describe the way Clinton should report this accounting change in the 2019?2021 comparative financial statements.2. Prepare any 2021 journal entry related to the change.

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