ABC INC. has entered into a 10-yr contract with a total transaction price of $9000 that involves ABC making a nuclear power plant, and ABC has an enforceable right to payment as performance is completed. At the beginning of the contract, ABC anticipates $800 in costs per year. The first 7 yrs go as expected. But, at the beginning of the eighth year, ABC realizes the remaining years (years 8-10) will have increased costs of $300 per year. At the end of year 8, the cumulative billings to date for the contract total $6000. What is the effect (direction and amount) of the year 8 long-term contract adjusting entry (if any) on the following:

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Total assets effect (increase, decrease,no effect ) what amount $_________

Total Liabilities effect (increase, decrease,no effect ) what amount $_________

Net income effect (increase, decrease,no effect ) what amount $_________