2 Question 3 During 20x7, Severide Construction Corp., a publicly accountable company, purchased the Casey Buildings Company. Casey is a private company subject to ASPE and accounts for their construction contracts using the completed contract method. In order to be able to consolidate the results of Casey, you need to make a change in accounting policy to move them to the percentage of completion basis. Casey started operations on December 31, 20x3. You have compiled the following information: 20x4 20x5 20x6 Construction in Process account - completed contract method - percentage of completion method $3,000,000 1,500,000 $4,400,000 2,300,000 $5,900,000 4,200,000 Assuming a tax rate of 35%, prepare the journal entry to account for this change in policy. The completed contract method is the method used for purposes of calculating taxable income