A company changes from percentage of completion to completed contract method, which is used for tax purposes The entry to record this change should include a debit to Construction in Process debit to Loss on Long term Contracts in the amount of the difference on prior years, net of tax debit to Retained Earnings in the amount of the difference on prior years, net of tax credit to Deferred Tax Liability

The Answer is in the image, click to view ...

Question: A company changes from percentage-of-completion to completed-contract method, which is used for tax purposes. The entry to record this change should include a debit to

A company changes from percentage-of-completion to completed-contract method, which is used for tax purposes. The entry to record this change should include a

		debit to Construction in Process.
		debit to Loss on Long-term Contracts in the amount of the difference on prior years, net of tax.
		debit to Retained Earnings in the amount of the difference on prior years, net of tax.
		credit to Deferred Tax Liability

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

On January 1, the board of directors declared a $1.50 cash dividend per share to shareholders of record on February 15. The dividend declared on January 1 was paid on February 28. The company has...

Choose the correct answer 16. Which of the following is accounted for as a change in accounting principle? a. A change in the estimated useful life of plant assets. b. A change from the cash basis of...

A company changes from percentage-of-completion to completed-contract method, which is used for tax purposes. The entry to record this change should include a A) debit to Construction in Process. B)...

volicies rent Attempt in Progress company changes from percentage - of - completion to completed - contract method, which is used for tax purposes. The entry to ecord this change should include a...

I attached the original No. 36-40 Byfort Company reports the following in its financial statements: *All sales are on credit. 36. How much did the company collect in cash from debtors during 2006? A....

A company changes from percentage-of-completion to completed-contract, which is the method used for tax purposes. The entry to record this change should include a

9.19 During 19X1 and 19X2, Company B used the percentage-of-completion method of accounting for construction. At the beginning of 19X3 it decides to switch to the completed-contract method (for both...

19 During 19X1 and 19X2, Company B used the percentage-of-completion method of accounting for construction. At the beginning of 19X3 it decides to switch to the completed-contract method (for both...

During 19X1 and 19X2, Company B used the percentage-of-completion method of accounting for construction. At the beginning of 19X3 it decides to switch to the completed-contract method (for both book...

20) Which of the following adjusts the company's balance of cash in a bank reconciliation? A) Interest earned. C) Deposits outstanding. 20) B) Checks outstanding. D) An error by the bank. 21) On...

Determine: a). The thinnest soap film (n = 1.33) in air that will result in constructive interference for reflected light of wavelength 656 nm. b). What is the next thinnest soap film? c). Your...

Is it possible to maintain a pressure of 10 kPa in a condenser that is being cooled by river water entering at 20C?

The maturity of the assets and liabilities of property - casualty insurance companies tend to be that for life insurance companies. about the same as shorter than longer than

a=2 b= 0 c= 2 d=0 e=0 f=9 g=3 5. Draw the Network diagram for the following project. Estimate the Earliest start time and Latest finish time for each activity. If every day it cost 200 rials for this...