E22-13B (Change in PrincipleLong-term Contracts) Black Hoe Construction changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2015. 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. Pretax Income from: Percentage-of-Completion Completed-Contract Difference 2014 $125,000 $ 25,000 $100,000 2015 360,000 200,000 160,000 Instructions (a) Assuming that the tax rate is 40%, what is the amount of net income that would be reported in 2015? (b) What entry(ies) are necessary to adjust the accounting records for the change in accounting principle?