Homer Alaska Inc. (HA) has used the completed-contract method to account for long-term construction contracts since its inception in 2018. In 2020, HA decided to change to the percentage-of-completion method because it is the industry norm. HA previously used the completed-contract method for income tax purposes and will continue to do so. Its income tax rate is 20%. The following lists HAs income under each of the two income recognition methods:

	Year ended December 31
Income before taxes	2018	2019	2020
Completed-contract method (reported)	$ 80,000	$ 120,000	$ 170,000
Percentage-of-completion method(calculated)	$ 100,000	$ 150,000	$ 200,000

Required:

Prepare the journal entry to reflect the accounting change in 2020, the year of the change.