Mark Construction Company changed from the cost-recovery to the percentage-of-completion method of accounting for long-term construction contracts during 2019. For tax purposes, the company employs the cost-recovery method and will continue this approach in the future. The appropriate information related to this change is as follows.

2. Mark Construction Company changed from the cost-recovery to the percentage-ofcompletion method of accounting for long-term construction contracts during 2019. For tax purposes, the company employs the cost-recovery method and will continue this approach in the future. The appropriate information related to this change is as follows. (5 Marks) Pretax Income from Percentage-of Cost-Recovery Difference Completion 2018 $780,000 $610,000 $170,000 2019 700,000 480,000 220,000 Required: a. Assuming that the tax rate is 35%, what is the amount of net income that would he reported in 2019? I]. What entrytiesl is necessary to adjust the accounting records for the change in accounting policy