3. Malique Construction Company changed from the cost-recovery to the percentage-of-completion method of accounting for long-term construction contracts during 2021. For tax purposes, the company employs the cost-recovery method and will continue this approach in the future. (Hint: Adjust all tax consequences through the Deferred Tax Liability account.) The information related to this change is as follows, assuming that the tax rate is 20% Pretax Income from Year Percentage of completion Cost Recovery Difference 2020 $ 390,000 $305,000 $ 85,000 2021 350,000 240,000 110,000 Instructions a. Define what type of accounting change is it? b. What entry(ies) is necessary to adjust the accounting records for the change? c. What is the amount of net income that would be reported in 2021.