Solution-What is the amount of net income that would be

What is the amount of net income that would be reported

Reference no: EM133178511

Question - Sand-hill Construction Company, which began operations in 2020, changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2021. 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 follows.

Pretax Income from
	Percentage-of-Completion	Completed-Contract	Difference
2020	$370,000	$556,000	$314,000
2021	919,000	483,000	436,000

Required -

(a) Assuming that the tax rate is 20%, what is the amount of net income that would be reported in 2021?

(b) What entry is necessary to adjust the accounting records for the change in accounting principle?

Reference no: EM133178511

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What is the amount of net income that would be reported

Reference no: EM133178511

Reference no: EM133178511

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