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On January 1, 2025, Crane Corporation changed to the percentage-of-completion method of income recognition. This change is justified by Crane Corporation. On December 31, 2024,
On January 1, 2025, Crane Corporation changed to the percentage-of-completion method of income recognition. This change is justified by Crane Corporation. On December 31, 2024, Crane's Retained Earnings balance was $1630000. Crane calculated that, if the percentage-of-completion method had been used, the accumulated impact on net income (before taking into consideration any income tax effects) would have been an additional \$330000 of revenue in 2024. If Crane's income tax rate is 25%, one of the impacts of this accounting change would be an increase to Income Tax Expense of $82500 in 2025. an increase to Income Tax Payable of $82500. a decrease to Income Tax Payable of $82500. an increase to Construction in Progress of $247500 on December 31, 2024
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