Dream Home Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method prior to 2020. In 2020, it changed to the percentage-of-completion method. The company decided to use the same for income tax purposes. The tax rate enacted is 40%. Pre-tax income under both the methods for the past three years appears below.

2018 2019 2020

Completed contract $450,000 $300,000 $150,000

Percentage-of-completion 750,000 375,000 270,000

Prepare the journal entry Dream Home should make at the beginning of 2020.