III Current Attempt in Progress In 2019, Bergeron Construction Company Ltd. applied the completed-contract method of accounting for long-term construction contracts. However, in 2020. Bergeron discovered that the percentage-of-completion method should have been applied instead. For tax purposes, the company uses the completed-contract method and will continue this approach in the future. Bergeron follows ASPE, and will apply the percentage-of-completion method in 2020 and in the future. Bergeron applies the deferred taxes method of accounting for income taxes, and is subject to a tax rate of 30%. The appropriate information related to this change is as follows: Pre-Tax Income Using: Percentage- of-Completion Completed- Contract Difference 2019 $836,000 $610,000 $226,000 2020 704.000 462,000 242,000 Calculate the net income to be reported in 2020. $ Net income List of Accounts Provide the necessary entry in 2020 to adjust the accounting records with respect to the revenue recognition method applied in 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Account Titles and Explanation Debit Credit List of Accounts Field Corp's controller was preparing the adjusting entries for the company's year ended December 31, 2020, when the V.P.Finance called him into her office. "Jean-Pierre," she said, "I've been considering a couple of matters that may require different treatment this year. First, the patent we acquired in early January 2018 for $567,000 will now likely be used until the end of 2022 and then be sold for $179,000. We previously thought that we'd use it for 10 years in total and then be able to sell it for $133,000. We've been using straight-line amortization on the patent." "Second, I just discovered that the property we bought on July 2, 2017 for $267,200 was charged entirely to the Land account instead of being allocated between Land ($63,200) and Building ($204,000). The building should be of use to us for a total of 20 years. At that point, it'll be sold and we should be able to realize at least $47,400 from the sale of the building." "Please let me know how these changes should be accounted for and what effect they will have on the financial statements." Field Corp. follows IFRS. Answer the following, ignoring income tax considerations and assuming that the company has not previously reported quarterly results. Assuming that no amortization has recorded as yet for the patent for 2020, prepare the December 31, 2020 entries that are necessary to make the accounting changes and to record patent amortization expense for 2020. (Credit account titles are automatically indented when the 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.) Debit Credit Date Account Titles and Explanation Debit Credit Dec. 31 (To record amortization expense.) Dec. 31 (To record error correction entry.) Dec. 31 (To record error correction entry.) Calculate where possible, the required disclosure amounts per year of increase/decrease for each change. Amount Increase/Decrease Patent Amortization Expense $ Net Income $ Land and Building Depreciation Expense $ Net Income $ List of Accounts