Described below is an independent situation involving accounting changes. The change occurs during 2021 before any adjusting entries or closing entries are prepared.

At the beginning of 2021, Jantzen Specialties, which uses the straight-line method, changed to the double-declining-balance method for newly acquired vehicles. The change decreased current year net income by $445,000.

Required:

1. Identify the type of change.

2. Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2021 related to the situation described. (Ignore income tax effects.)

3. Briefly describe any other steps that should be taken to appropriately report the situation.