Exercise 22-6 Martinez 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 $897,000 $611,000 986,000 528,000 Difference 2017 2018 $286,000 458,000 (a) Assuming that the tax rate is 40%, what is the amount of net income that would be reported in 2018? Net incomes (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 o for the amounts.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work