Pam Erickson Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction
Question:
Pam Erickson Construction Company 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 as follows.
Instructions
a. Assuming that the tax rate is 20%, what is the amount of net income that would be reported in 2021?
b. What entry(ies) are necessary to adjust the accounting records for the change in accounting principle?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Intermediate Accounting
ISBN: 978-1119503668
17th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel
Question Posted: