detmer construction company decided at the beginning of 2012 to change from the cost-recovery method to the percentage of completion method for financial reporting purposes. the company will continue to use the cost-recovery method for tax purposes. for years prior to 2012, pretax income under the two methods was as follows:

percentage of completion $144,000

cost recovery $114,000

The tax rate is 35%

Detmer has a profit sharing plan, which pays all employees a bonus at year end based on 1.5% of pretax income.

What is the amount of the indirect effect of Detmer's change in accounting policy that will be reported in the 2012 income statement, assuming that the profit-sharing contract explicitly requires adjustment for changes in income numbers?

a. $2,160

b. $1,710

c. $450

d. $954