Current Attempt in Progress

Grouper Construction Company changed from the cost$-$recovery to the percentage$-$of$-$completion method of accounting for longterm construction contracts during $2026.$ For tax purposes, the company employs the cost$-$recovery method and will continue this approach in the future. $($Hint: Adjust all tax consequences through the Deferred Tax Liability account.$)$ The appropriate information related to this change is as follows.

$\backslash$table$[[,$Pretax Income from$],[,$Percentage$-$of$-$Completion,Cost$-$Recovery,Difference$],[2025,$$$781,000,$$$578,000,$$$203,000$