Exercise 22-6 Cheyenne Construction Company, which began operations in 2017, changed from the completed-contract to the percentage of completion method of accounting for long-term construction contracts during 2018. 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 Completed Completion Contract $925,000 $532,000 873,000 516,000 2017 Difference $393,000 357,000 2018 (a) Assuming that the tax rate is 35%, what is the amount of net income that would be reported in 2018? Net income (b) What entry is necessary to adjust the accounting records for the change in accounting principle? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit