Vaughn Construction Company changed from the cost$-$recovery to the percentage$-$of$-$completion method of accounting for long$-$term construction contracts during $2026.$ For tax purposes, the company employs the cost$-$recovery 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

$\backslash$table$[[,$Percentage$-$of$-$Completion,,Cost$-$Recovery,,Difference$],[2025,$$$850,000,,$$$638,000,,$$$212,000$