E21.1 (LO 1) (Change in Principle-Long-Term Contracts) Pam Erickson Construction Company changed from the cost-recovery to the percentage-of-completion method of accounting for long-term construction contracts during 2026. For tax purposes, the company employs the cost-recovery method and will continue this approach in the future. (Hint: Adjust all tax consequences through the Deferred Tax Liability account.) The appropriate information related to this change is as follows. Instructions a. Assuming that the tax rate is 20%, what is the amount of net income that would be reported in 2026 ? b. What entry(entries) are necessary to adjust the accounting records for the change in accounting principle