Since incorporation in 2018, Ning Construction Inc. has accounted for its income from long-term construction contracts using the completed-contract method because this method is allowed by the Canada Revenue Agency. The completed-contract method allowed Ning to postpone income taxes into the future. Because Ning wanted to expand and needed to obtain additional financing, early in 2020, the company changed from following ASPE to following IFRS. Due to this change, Ning adopted the percentage-of- completion basis for financial accounting purposes. The completed-contract method will continue to be used for tax filing purposes. The senior accountant has arrived at the following information for the only contract in process during the three fiscal years from 2018 to 2020. Ning had no other contracts since incorporation. Year ended December 31, 2020 2019 2018 $2,113,000 $1,563,000 $850,000 0 0 0 Completed-contract: Balance Contract Asset/Liability (excluding billings) Revenue from long-term contracts Construction expenses Percentage-of-completion: Balance Contract Asset/Liability (excluding billings) Revenue from long-term contracts 0 0 0 2.274,000 901,000 1,691,000 790,000 583,000 901.000 Construction expenses 550,000 713,000 850,000 Prepare the necessary journal entry at December 31, 2020, to record the above corrections and changes as appropriate. The books are still open for 2020 and have accounts with balances as indicated for the completed-contract method. Because Ning has not yet recorded its 2020 income tax expense and payable amounts, you may ignore tax effects for the current year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter Ofor the amounts.) Account Titles and Explanation Debit Credit Contract Asset/Liability 2.113,000 Retained Earnings 2.113,000 (To record gross profit for prior years 2018 and 2019) Prepare the necessary journal entries at December 31, 2020, to recognize revenue and expenses. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit No Entry No Entry (To record revenues) No Entry IND No Entry (To record construction expenses) eTextbook and Media List of Accounts Assume instead that the change was implemented in early 2021 and that the tax rate for Ning is 25%. Repeat part (a). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Construction in Process 2.274.000 Deferred Tax Liability 568,500 Retained Earnings 1.705.500 (To record gross profit for prior years 2018 to 2020) e Textbook and Media List of Accounts