Tamarisk Construction Company changed from the completed$-$contract to the percentage$-$of$-$completion method of accounting for

long$-$term construction contracts during $2021.$ For tax purposes, the company employs the completed$-$contract 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 $2021?$

Net income $

$($b$)$ What entry is necessary to adjust the accounting records for the change in accounting principle? $($Credit account titles are

automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and

enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

eTextbook and Media

List of Accounts

Attempts: $0$ of $3$ used