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Turner LLC, a real estate developing company, was accounting for its long-term contractes completed contract method prior to 20X5. In 20X5, it changed to

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Turner LLC, a real estate developing company, was accounting for its long-term contractes completed contract method prior to 20X5. In 20X5, it changed to the percentage-of-completion method. The company decided to use completed contract for income tax purposes. The tax rate enacted is 40%. Income before taxes under both the methods for the past three years appears below 20X4 20X3 20X5 Completed contract $300,000 $210,000 $105,000 Percentage-of-completion 530,000 250,000 180,000 Which of the following will be included in the journal entry made by Tumer to record the income effect? OA credit to Retained Earnings for $270,000 OA credit to Deferred Tax Liability for $108,000 OA credit to Deferred Tax Liability for $162,000 OA credit to Retained Earnings for $108,000

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