what entry ies are necessary to adjust the accounting records for the change in acco 592464

(Change in Principle—Long-Term Contracts) Bryant Construction Company began operations in 2011 and changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2012. For tax purposes, the company employs the completed contract method and will continue this approach in the future. The appropriate information related to this change is as follows.

Pretax Income from

Percentage-of-Completion

Completed-Contract

Difference

2011

$980,000

$730,000

$250,000

2012

900,000

480,000

420,000

Instructions

(a) Assuming that the tax rate is 40%, what is the amount of net income that would be reported in 2012?

(b) What entry (ies) are necessary to adjust the accounting records for the change in accounting principle?