Marigold Construction Company changed from the completed$-$contract to the percentage$-$of$-$completion method of accounting for long$-$term construction contracts during $2021.$ For tax purposes, the company employs the completed$-$contract 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,Completed$-$Contract,Difference$],[2020,$$$788,000,$$$536,000,$$$252,000],[2021,704,000,471,000,233,000]]$

$($a$)$ Assuming that the tax rate is $30\%,$ what is the amount of net income that would be reported in $2021?$

Net income $

$($b$)$ What entry is necessary to adjust the accounting records for the change in accounting principle? $($Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter Ofor the amounts.$)$

Account Trtles and Explanation

Debit

Credit