Crane 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. The tax rate enacted is 20%. Income before taxes under both the methods for the past three years appears below. Completed contract Percentage-of-completion 2022 $505000 805000 2023 $333000 419000 2024 O A credit to Retained Earnings for $308800 O A credit to Retained Earnings for $229840 O A debit to Retained Earnings for $308800 A debit to Retained Earnings for $229840 $161000 325000 Which of the following will be included in the journal entry made by Crane Home to record the income effect after taxes?

Crane 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. The tax rate enacted is 20%. Income before taxes under both the methods for the past three years appears below. Which of the following will be included in the journal entry made by Crane Home to record the income effect after tawes? Acredit to Retained Earnings for $308800 Acredit to Retained Earnings for $229840 N debit to Retained Farnings for $308800 A debir to Retained Earnings for $229840 Crane 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. The tax rate enacted is 20%. Income before taxes under both the methods for the past three years appears below. Which of the following will be included in the journal entry made by Crane Home to record the income effect after tawes? Acredit to Retained Earnings for $308800 Acredit to Retained Earnings for $229840 N debit to Retained Farnings for $308800 A debir to Retained Earnings for $229840