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Use the following to answer question 71: Dream Home Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract

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Use the following to answer question 71: Dream Home Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method prior to 2018. In 2018, it changed to the percentage-of- completion method. The company decided to use the same for income tax purposes. The tax rate enacted is 40%. Income before taxes under both the methods for the past three years appears below 2016 2017 2018 $450,000 750,000 Completed contract S300,000$150,000 375,000 270,000 Percentage-of-completion 71. What amount will be debited to Construction in Process account, to record the change at beginning of 2018? A) $375,000 B) $150,000 C) $225,000 D) $75,000

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