Question
blossom home inc, a real estate developing company was accounting for its long-term contracts using the completed contract method prior to 2024. in 2024 it
blossom home inc, a real estate developing company was accounting for its long-term contracts using the completed contract method prior to 2024. in 2024 it changed to the percentage of completion method.
The company decided to use the same for income tax purposes, rate enacted is 20%. Income before taxes under both the methods for the past three years appears below
2022 2023 2024
Completed Contract 440000 294000 148000
Percentage of completion 740000 367000 260000
Which of the following will be included in the journal entry made by Blossom Home to record the income effect after taxes?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting
Authors: Jamie Pratt, Michael F Peters
11th Edition
1119745322, 978-1119745327
