During $2022$ and $2023,$ Faulkner Manufacturing used the sum$-$of$-$the$-$years$-$digits $($SYD$)$ method of depreciation for its depreciable assets, for both financial reporting and tax purposes. At the beginning of $2024,$ Faulkner decided to change to the straight$-$line method for both financial reporting and tax purposes. A tax rate of $25\%$ is in effect for all years.

For an asset that cost $$30,000$ with an estimated residual value of $$1,000$ and an estimated useful life of $10$ years, the depreciation under different methods is as follows:

Year Straight Line SYD Difference

$2022$ $ $2,900$ $ $5,273$ $ $2,373$

$20232,9004,7451,845$

$ $5,800$ $ $10,018$ $ $4,218$

Required:

Prepare the journal entry that Faulkner will record in $2024$ related to the change.

Suppose instead that Faulkner previously used straight$-$line depreciation and changed to sum$-$of$-$the$-$years$-$ digits in $2024.$ Prepare the journal entry that Faulkner will record in $2024$ related to the change.