(Change in PrincipleLong-Term Contracts) Pam Erickson Construction Company changed from the cost-recovery to the percentage-of-completion method of accounting for longterm construction contracts during 2026. For tax purposes, the company employs the cost-recovery method and will continue this approach in the future. (Hint: Adjust all tax consequences through the Deferred Tax Liability account.) The appropriate information related to this change is as follows. Pretax Income from Percentage-of-Completion Cost-Recovery Difference 2025 $780,000 $590,000 $190,000 2026 700,000 480,000 220,000. Assuming that the tax rate is 20%, what is the amount of net income that would be reported in 2026? b. What entry(entries) are necessary to adjust the accounting records for the change in accounting principle