Alia Khan Robotics Inc. has been in operation for 3 years. All of its manufacturing equipment, which has a useful life of 10 to 12 years, has been depreciated on a straight-line basis. During the fourth year, Khan Robotics changes to an accelerated depreciation method for all of its equipment.

(a) Will Khan Robotics post a gain or a loss on this change?

(b) How will this change be reported?