Final answer:
The switch in depreciation method for Johnstone Manufacturing Company should be reported in the Notes to Financial Statements. Here, it will describe the change, its justification, and its financial effects.
Step-by-step explanation:
When Johnstone Manufacturing Company switches their depreciation method, the type of report they would indicate this change in is the Notes to Financial Statements. This is because changes in accounting principles and their effects are typically disclosed in the notes to provide transparency and understanding to the users of the financial statements. It is important for investors and other stakeholders to be aware of how such changes might affect the company's financial position and results of operations.
In the Notes, you would find a description of the change in depreciation method, the justification for making the change, and the effects on the current and comparative period financial results. The details might include the difference in the depreciation expense reported, as well as impacts on income and net assets.