Cole Construction Company elected to change its method of accounting from the completed contract method to the

Question:

Cole Construction Company elected to change its method of accounting from the completed contract method to the percentage-of-completion method. Prior years’ income (cumulative) would have been $ 550,000 higher if Cole had always used the percentage-of-completion method. The company is subject to a 35% tax rate. Prepare the journal entry to record the change in method.