Question $15$

Problem $3$A: Situations of a Change in Accounting Principle accounting for its long$-$term construction contracts. They prepared the followning in hom foumon

Completed$-$Contract Method $2023,2024,2025$

Income before income taxes $$800,000,$$$975,000,1,121,250$

Effective January $1,2025,$ Shore changed to the percentage$-$of$-$completion method and on waver owe change. The company has a tax rate is $25\%,$ and is allowed to use completed contractmeltod trear purpose. It determines the amounts under the percentage of completion method to be

Percentage$-$of$-$Completion Income before income taxes $2023,2024,2025$

$$1,100,000,$$$1,298,000,$$$1,431,100$

Required: Prepare the journal entries to reflect the change on $\frac{1}{1}\frac{?}{2025}.$