Wertz Construction Company decided at the beginning of 2015 to change from the cost-recovery method to the

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Wertz Construction Company decided at the beginning of 2015 to change from the cost-recovery method to the percentage-of-completion method for financial reporting purposes. The company will continue to use the cost-recovery method for tax purposes. For years prior to 2015, pretax income under the two methods was as follows: percentage-of-completion \($120,000,\) and cost-recovery \($80,000.\) The tax rate is

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Intermediate Accounting IFRS Edition

ISBN: 9781118443965

2nd Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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