urd Attempt in Progress Blue 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. Pretax Income from: 2020 Percentage-of-Completion $849,000 764,000 Completed-Contract $576,000 522,000 Difference $273.000 242.000 2021 (a) Assurning that the tax rate is 35%, 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 tities 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 for the amounts.) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Attempts: 0 of 3 used Submit Answer Sarve for Later