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 belovw Completed-Contract Percentage-of-Completion 2016 2017 2018 $ 475,000 625,000 700,000 $1,800,000 900,000 950,000 1,050,000 $2,900,000 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 O $770,000 on the 2018 income statement. $525,000 on the 2018 income statement. $770,000 on the 2018 retained earnings statement. $525,000 on the 2018 retained earnings statement. O