E22-13 (Change in Principle-Long-Term Contracts) Bryant Construction Company began operations in 2011 and changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2012. For tax purposes, the company employs the completed- contract method and will continue this approach in the future. The appropriate information related to this change is as follows. 2011 2012 Pretax Income from Completed-Contract Difference $730,000 480,000 $250,000 420,000 Percentage-of-Completion $980,000 900,000 Instructions (a) Assuming that the tax rate is 40%, what is the amount of net income that would be reported in 2012? (b) What entry(ies) are necessary to adjust the accounting records for the change in accounting principle?