Brief Exercise 22-2 Your answer is incorrect. Try again., At the beginning of 2017, Sheridan Construction Company changed from the completed-contract method to recognizing revenue over time (percentage-of-completion) for financial reporting purposes. The company will continue to use the completed-contract method for tax purposes For years prior to 2017, pretax income under the two methods was as follows: percentage-of-completion $128,200, and completed-contract tax rate is 35%. Sheridan has a profit-sharing plan, which pays all employees a bonus at year-end based on 1% of pretax income Compute the indirect effect of Sheridan's change in accounting principle that will be reported in the 2017 income statement, assuming that the profit-sharing contract explicitly requires adjustment for changes in income numbers. Indirect effect 33735