Kingbird 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 $901,000 $648,000 971,000 480,000 Difference $253,000 491,000 2017 2018 (a) Assuming that the tax rate is 40%, what is the amount of net income that would be reported in 2018? (b) What entry is necessary to adjust the accounting records for the change in accounting principle