Use the following to answer question 73: 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 S450,000 $300,000 150,000 Completed contract Percentage-of-completion 375,000 750,000 270,000 Page 22 Which of the following will be included in the journal entry made by Dream Home to record the income effect? A) A debit to Retained Earnings for $225,000 B) A credit to Retained Earnings for $225,000 C) A credit to Retained Earnings for $150,000 D) A debit to Retained Earnings for S150,000