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please help me out with this question On January 1,2025, Blossom Corporation changed to the percentage-of-completion method of income recognition. This change is justified by
please help me out with this question
On January 1,2025, Blossom Corporation changed to the percentage-of-completion method of income recognition. This change is justified by Blossom Corporation, On December 31,2024 , Blossom's Retained Earnings balance was $1620000. Blossom 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 $320000. If Blossom'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 $320000. an increase to the Retained Earnings balance on December 31, 2024, of $320000 an increase to Construction in Progress of $320000 on December 31, 2024. an increase to Construction in Progress of $1620000 on December 31, 2024 Step by Step Solution
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