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: 2016 2017 Completed-Contract $ 475,000 $ 625,000 Percentage-of-Completion $ 900,000 $ 950,000 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 Select one: O a. $525,000 on the 2018 income statement. O b. $770,000 on the 2018 retained earnings statement. O c. $770,000 on the 2018 income statement. O d. $525,000 on the 2018 retained earnings statement