Serat Construction Company elected to change its method of accounting from the percentage-of completion method to the

Question:

Serat Construction Company elected to change its method of accounting from the percentage-of completion method to the completed-contract method. Prior years’ income (cumulative) would have been $ 300,000 lower if Serat had always used the completed contract method. The company is subject to a 35% tax rate. Prepare the journal entry to record the change in method.