For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2021 for $2,560,000. Its useful life was estimated to be six years, with a $160,000 residual value. At the beginning of 2024, 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 2022–2024 comparative financial statements.
2. Prepare any 2024 journal entry related to the change.

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Year 2021 2022 2023 Straight Line $ 400 400 400 $1,200 ($ in thousands) Declining Balance $ 853 569 379 $1,801 Difference $453 169 (21) $601