Current Attempt in Progress At the beginning of 2025, Skysong 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 $122,000, and cost-recovery $73,200. The tax rate is 20%. Prepare Skysong's 2025 journal entry to record the change in accounting principle. (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all deblt entries before credit entries.) Account Titles and Explanation Construction in Process Deferred Tax Liability Retained Earnings Debit Credit

At the beginning of 2025, Skysong Construction Compary 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 $122,000, and cost-recovery $73,200. The tax rate is 20%. Prepare Skysong's 2025 journal entry to record the change in accounting principle. (Credit account titles are automatically indented when the amount is entered. Do not indent monually, If no entry is required, select "No Entry" for the occount titles and enter Ofor the amounts. Lst all debit entries before credit entries)