During 2018, a construction company that began operations in 2016 changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below Completed-Contract Percentage-of-Completion 2016 520000 955000 675000 1000000 2017 2018 750000 1100000 $1945000 $3055000 Assuming an income tax rate of 30% for all years, the effect of this accounting change on prior periods should be reported by a credit of O $785000 on the 2018 retained earnings statement. O $785000 on the 2018 income statement. $532000 on the 2018 retained earnings statement. O$532000 on the 2018 income statement