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question $8$

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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$.$ credit to Deferred Tax Liability.

b$.$ debit to Loss on Long$-$term Contracts in the amount of the difference on prior y$$ars$,$ net of tax.

c$.$ debit to Construction in Process.

d$.$ debit to Retained Earnings in the amount of the difference on prior years, net of tax.