Dream Home Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method prior to 2015. In 2015, it changed to the percentage-of-completion method.
The company decided to use the same for income tax purposes. The tax rate enacted is 40%.Income before taxes under both the methods for the past three years appears below.

Which of the following will be included in the journal entry made by Dream Home to record the income effect?

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2015 2014 2013 Completed contract S300,000 S200,000 S100,000 Percentage-of-completion 500,000 250,000 180,000