Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. cullen construction company, which began operation

Cullen Construction Company, which began operations in 2020, changed from the completed- contract to the...

70.2K

Verified Solution

Question

Accounting

image

Cullen Construction Company, which began operations in 2020, 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. The appropriate information related to this change is as follows. Pretax Income from Percentage-of-Completion Completed-Contract Difference 2020 $880,000 $590,000 $290,000 2021 900,000 480,000 420,000 Instructions a. Assuming that the tax rate is 20%, what is the amount of net income that would be reported in 2021? b. What entry(ies) are necessary to adjust the accounting records for the change in accounting principle

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The Bensington Glass Company entered into a loan agreement with the? firm's bank to finance the?...

Finance
Q

Please answer all questions please 1.Explain how the NGS approach has been able to bring the...

Biology
Q

A rectangular loop of sides 20 cm 10 cm carrying I of 12 A is...

Physics
Q

When the positive integer k is divided by 9, the remainder is 4.Quantity AThe remainder...

Geometry
Q

t2 of 2 ts eBook Print eferences Required information Required 1 Required 2 Prepare the...

Basic Math
Q

Determine the location of any critical values of f If multiple such values exist enter...

Calculus
Q

Splcewood Stables, Incorporated, was established In Dripping Springs, Texas, on Aprll 1. The...

Accounting
Q

Using complements(with respect to1) of the single discounts, find the net cost equivalent for the...

Accounting
Q

Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises stockholders equity accounts, with balances on January...

Accounting
Q

Down Under Products sales budget for the next four months is as follows: Unit Sales...

Accounting
Q

Ravenna Company is a merchandiser that uses the Indirect method to prepare the operating activities...

Finance
Q

Wainut Company has forecast sales for the next three months as follows: July 4,500 units,...

Accounting