During 2016 and 2017, 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 2018, Faulkner decided to change to the straight-line method for both financial reporting and tax purposes. A tax rate of 40% is in effect for all years. For an asset that cost $12,100 with an estimated residual value of $1,100 and an estimated useful life of 10 years, the depreciation under different methods is as follows:

Year	Straight Line				SYD			Difference
2016		$	1,100		$	2,000			$	900
2017			1,100			1,800				700
		$	2,200		$	3,800			$	1,600

Required: 1. Prepare the journal entry that Faulkner will record in 2018 related to the change. 2. Suppose instead that Faulkner previously used straight-line depreciation and changed to sum-of-the-years- digits in 2018. Prepare the journal entry that Faulkner will record in 2018 related to the change.