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?

Pretax Income from Percentage-of-Completion Difference Completed-Contract 2009 2010 $730,000 $980,000 900,000 $250,000