3. Shelley Construction began operations in 2018 and appropriately used the completed-contract method in accounting for its long-term construction contracts. They prepared the following information: (15 points) I Completed-Contract Method 2018 2019 Construction Revenue $1,775,000 $1,977,500 2020 $2,274,125 Expenses Income before income taxes 975.000 $800,000 1,002,500 1,152,875 $975,000 1,121,250 Effective January 1, 2020, Shelley changed to the percentage-of-completion method tax reporting and can justify the change; the company's tax rate is 35%. It determines the construction and revenue expense amounts under the percentage of completion method to be: Percentage-of-Completion 2018 Construction Revenue $2,200,000 2019 $2,530,000 2020 $2,909,500 Expenses 1,100,000 1,232,000 1,478,400 Income before income taxes $1,100,000 $1,298,000 $1,431,100 Required: 1) How would the company account for the change? 2) Prepare the journal entries to reflect the changes.