38 At the beginning of 2019, Bayside Co. changed from the recognition overtime (percentage-of-completion) to the completed-contract method for financial reporting purposes. The company will continue to use the completed-contract method for tax purposes. For years prior to 2019, pretax income under the two methods was as follows: percentage-of-completion $278,000, and completed-contract $231,000. The tax rate is 30%. In preparing its 2019 journal entry to record the change in accounting principle, Construction in Process would be credited by what amount?

Select one: a. $14,100 b. $32,900 c. $47,000 d. $231,000

39.At the beginning of 2019, Bayside Co. changed from the recognition overtime (percentage-of-completion) to the completed-contract method for financial reporting purposes. The company will continue to use the completed-contract method for tax purposes. For years prior to 2019, pretax income under the two methods was as follows: percentage-of-completion $278,000, and completed-contract $231,000. The tax rate is 30%. In preparing its 2019 journal entry to record the change in accounting principle, Deferred Tax Liability would be debited by what amount? Select one: a. $14,100 b. $231,000 c. $47,000 d. $32,900