Waterway 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 Percentage-of-Completion 2025 2026 Cost-Recovery Difference $796,000 $566,000 $230,000 710,000 504,000 206,000 (a) Assuming that the tax rate is 30%, what is the amount of net income that would be reported in 2026? Net income $ eTextbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer