Question: Pam Erickson Construction Company changed from the completed con

Pam Erickson Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2008. 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.


Instructions
(a) Assuming that the tax rate is 35%, what is the amount of net income that would be reported in 2008?
(b) What entry (ies) are necessary to adjust the accounting records for the change in accountingprinciple?
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  • CreatedMay 15, 2012
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