On January 1, 2025, Cullumber Corporation changed to the percentage-of-completion method of income recognition. This change is justified by Cullumber Corporation. On December 31, 2024. Cullumber's Retained Earnings balance was $1750000. Cullumber 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 $450000. If Cullumber's income tax rate is 25%, one of the impacts of this accounting change would be

On January 1, 2025, Cullumber Corporation changed to the percentage-of-completion method of income recognition. This change is justified by Cullumber Corporation. On December 31, 2024, Cullumber's Retained Earnings balance was $1750000. Cullumber 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 $450000. If Cullumber's income tax rate is 25%, one of the impacts of this accounting change would be a decrease to the Retained Earnings balance on December 31, 2024, of $450000. an increase to Construction in Progress of $450000 on December 31, 2024. an increase to the Retained Earnings balance on December 31, 2024, of $450000. an increase to Construction in Progress of $1750000 on December 31, 2024