Sparky began doing business on January 1, 2012 using the Percentage of Completion to record construction revenues. During 2016, Sparky changed to the Completed Contract Method to record construction revenues to be consistent with industry practice. The bookkeeper used the Completed Contract Method for recording construction revenues in 2016. The company compiled the following comparative data:

	Percentage of Completion Method	Completed Contract Method
2012	$ 600,000	$ 387,500
2013	$ 545,500	$ 322,500
2014	$ 537,500	$ 385,000
2015	$ 512,500	$ 395,000
2016	$685,000	$ 415,000

Determine the ADJUSTMENT to Sparkys Income from Continuing Operations (ICO) for this item. Sparky has a corporate tax rate of 30%.

If you need to increase ICO, enter your answer as a positive number; for instance: 3000

If you need to decrease ICO, enter your answer as a negative number; for instance: -3000

If you determine no change is needed to ICO; enter 0

Using the information, determine the cumulative effect adjustment to Retained Earnings that Sparky will recognize in the journal entry to record this accounting change. Sparky has a corporate tax rate of 30%.

If you need to increase RE, enter your answer as a positive number; for instance: 3000

If you need to decrease RE, enter your answer as a negative number; for instance: -3000

If you determine no change is needed to RE; enter 0

Sparky reports 3 years of comparative financial statements (2016, 2015, and 2014). Using the information above, determine the cumulative effect adjustment to Retained Earnings that Sparky will recognize in the comparative financial statements to record this accounting change. Sparky has a corporate tax rate of 30%.

If you need to increase RE, enter your answer as a positive number; for instance: 3000

If you need to decrease RE, enter your answer as a negative number; for instance: -3000

If you determine no change is needed to RE; enter 0