Bryant Construction Company changed from the cost-recovery to the percentage-of-completion method of accounting for long-term construction contracts

Question:

Bryant Construction Company changed from the cost-recovery to the percentage-of-completion method of accounting for long-term construction contracts during 2010. For tax purposes, the company employs the cost-recovery method and will continue this approach in the future. The information related to this change is as follows.


Bryant Construction Company changed from the cost-recovery to th


Instructions
(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 accountingpolicy?

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-0470616314

IFRS edition volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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