Prepare the necessary journal entries in each of the following independent situations to record the described accounting changes or correct the described errors.

A. On January 1, 2019, Hansen Construction decides to switch to the percentage-of-completion method from the completed-contract method in accounting for its long-term contracts. For tax purposes, the company uses the completed-contract method and will continue to do so in the future. Data regarding the amount of net income before tax under each method appears below. The tax rate is 35%.

2019 Prior to 2019

Percentage-of-completion $490,000 $450,000

Completed-contract $294,000 $240,000