Monty Construction Company changed from the cost-recovery to the percentage-of-completion method of accounting for long-term construction contracts during 2026. For tax purposes, the company employs the cost-recovery method and will continue this approach in the future. (Hint: Adjust all tax consequences through the Deferred Tax Liability account.) The appropriate information related to this change is as follows. Pretax Income from Percentage-of-Completion 2025 2026 Cost-Recovery Difference $822,000 $542,000 $280,000 750,000 497,000 253,000 (a) Assuming that the tax rate is 35%, what is the amount of net income that would be reported in 2026? Net income $