Please help me with the question below:

Sage 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. (a) Assuming that the tax rate is 40%, what is the amount of net income that would be reported in 2026? Net income $