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1. Change in Principle-Long-Term Contracts Bryant Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2010. For tax purposes, the company employs the completed-contract method and will continue this approach in the future. The appropriate information related to this change is as follows.
(a) Assuming that the tax rate is 40%, what is the amount of net income that would be reported in 2010?
(b) What entry (ies) are necessary to adjust the accounting records for the change in accounting principle?
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