E$21\mathrm{.}1($LO $1)($Change in Principle$$Long$-$Term Contracts$)$ Pam Erickson Construction Com pany changed from the cost$-$recovery to the percentage$-$of$-$completion method of accounting for long term construction contracts during $2026.$ For tax purposes, the company employs the cost$-$recovery Exercises $21-43$ method and will continue this approach in the future. $($Hint: Adjust all tax consequences through the Deferred Tax Liability account.$)$ The appropriate information related to this change is as follows. Pretax Income from Percentage$-$of$-$Completion Cost$-$Recovery Difference $2025$ $$780,000$ $$590,000$ $$190,0002026700,000480,000220,000$ Instructions a$.$ Assuming that the tax rate is $20\%,$ what is the amount of net income that would be reported in $2026?$ b$.$ What entry$($entries$)$ are necessary to adjust the accounting records for the change in accounting principle