At the beginning of 2025, Larkspur Construction Company changed from the cost-recovery method to recognizing revenue over time (percentage-of-completion) for financial reporting purposes. The company will continue to use the cost-recovery method for tax purposes. For years prior to 2025, pretax income under the two methods was as follows: percentage-of-completion $114.200, and cost-recovery $79.400. The tax rate is 40%. Larkspur has a profi--5haring plan, which pays all employees a bonus at year-end based on 1% of pretaxincome. Compute the indirect effect of Larkspur's change in accounting principle that will be reported in the 2025 income statement, assuming that the profit-sharing contract explicitly requires adjustment for changes in income numbers. Indirect effect At the beginning of 2025, Larkspur Construction Company changed from the cost-recovery method to recognizing revenue over time (percentage-of-completion) for financial reporting purposes. The company will continue to use the cost-recovery method for tax purposes. For years prior to 2025, pretax income under the two methods was as follows: percentage-of-completion $114.200, and cost-recovery $79.400. The tax rate is 40%. Larkspur has a profi--5haring plan, which pays all employees a bonus at year-end based on 1% of pretaxincome. Compute the indirect effect of Larkspur's change in accounting principle that will be reported in the 2025 income statement, assuming that the profit-sharing contract explicitly requires adjustment for changes in income numbers. Indirect effect