Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. At the beginning of 2024, a construction company that began operations in 2022 changed from the completed-contract method to thepercentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for thepast three years appear below:202220232024Completed-Contract$412000555000630000$1597000Percentage-of-Completion$823000880000980000$2683000The company reports two years of comparative statements. Assuming an income tax rate of 20% for all years, the effect of thisaccounting change on prior periods after taxes should be reported by a credit ofO $328800 on the 2023 retained earnings statement.O $588800 on the 2024 income statement.O $868800 on the 2023 income statement.O $868800 on the 2024 retained earnings statement.

Retained earnings are the net profits left over after all costs, taxes, and dividends to…

At the beginning of 2024, a construction company that began operations in 2022 changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below: Completed-Contract 2022 2023 2024 $412000 555000 630000 $1597000 Percentage-of-Completion $823000 880000 980000 $2683000 The company reports two years of comparative statements. Assuming an income tax rate of 20% for all years, the effect of this accounting change on prior periods after taxes should be reported by a credit of O $328800 on the 2023 retained earnings statement. O $588800 on the 2024 income statement. O $868800 on the 2023 income statement. O $868800 on the 2024 retained earnings statement.

At the beginning of 2024, a construction company that began operations in 2022 changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below: Completed-Contract 2022 2023 2024 $412000 555000 630000 $1597000 Percentage-of-Completion $823000 880000 980000 $2683000 The company reports two years of comparative statements. Assuming an income tax rate of 20% for all years, the effect of this accounting change on prior periods after taxes should be reported by a credit of O $328800 on the 2023 retained earnings statement. O $588800 on the 2024 income statement. O $868800 on the 2023 income statement. O $868800 on the 2024 retained earnings statement.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Want answer with Calculation

A: Choices Available1. Continue Deception:Pros: Temporary preservation of stock price and company…

Q: Which of the following BEST (select one) describes why auditors must maintain independence? a) The…

A: Auditor independence means that the auditor should be free from any kind of obligation towards the…

Q: Clearly marking all workpapers “Privileged and Confidential – Attorney Work Product” will prevent…

A: Attorney work product is a fundamental concept in the legal profession, ensuring that attorneys can…

Q: ive typing answer with explanation and conclusion Fraudulent misrepresentation requires…

A: Fraudulent misrepresentation is a critical concept in contract law and a substantial basis for legal…

Q: Describe one professional experience in which you used evidence as the basis for decision making and…

A: The objective of the question is to understand the importance of evidence-based decision making in…

Q: According to the Daubert criteria, to qualify as an expert report, the report must:

A: The Daubert criteria refer to a legal standard for the admissibility of expert witness testimony in…

Q: You are the audit manager for a new audit client. Your staff auditors are unsure of what constitutes…

Q: Determine if the mistake is counterbalancing or noncounterbalancing. Give a specific example for…

A: The mistake is counterbalancing or noncounterbalancing will be explained:

Q: The rules for meeting material participation are more strict than the rules for meeting active…

A: Active participation means where you help the management to take right decisions where as for…

Q: What weights should Ms. Thompson recommend for Colin’s strategy? specifically. its not clear from…

A: Portfolio duration and convexity are their weighted average.

Q: List the common biases and errors in decision-making. Provide suggestions for how to avoid falling…

A: There are many errors and biases inn decision making such as.1.Overconfidence Bias2.Anchoring…

Q: Provide a detailed example as to what might cause an auditor/audit firm to decline taking on a new…

A: Audit engagement: Audit engagement is the act done by the auditor/audit firm to accept the audit of…

Q: Is the Is the Does the Example of decision Туре of Decision Making Does the Does the decision use…

A: Strategic decisions are decisions which affect future organizational policies, objectives or goals…

Q: A threat that a CPA will not appropriately evaluate the results of a previous judgment made by, or…

A: Advocacy threat = It refers to promoting a client's interests to the detriment of…

Q: s

A: Interim reporting : An interim statement is a financial report that covers a period of less than a…

Q: When the auditors have chosen to test a control, what relationship will the tolerable rate normally…

A: The tolerable deviation rate is the maximum allowable difference that is allowed before the audit…

Q: Auditors can help avoid litigation by implementing policies and procedures that ensure all work is…

A: Auditors can help avoid litigation by implementing policies and procedures that ensure all work is…

Q: Performing a post-audit is important because O managers will be more likely to submit reasonable…

A: Post-audits are crucial because they assist businesses in assessing the success of their investment…

Question

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

At the beginning of 2024, a construction company that began operations in 2022 changed from the completed-contract method to the
percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the
past three years appear below:
2022
2023
2024
Completed-Contract
$412000
555000
630000
$1597000
Percentage-of-Completion
$823000
880000
980000
$2683000
The company reports two years of comparative statements. Assuming an income tax rate of 20% for all years, the effect of this
accounting change on prior periods after taxes should be reported by a credit of
O $328800 on the 2023 retained earnings statement.
O $588800 on the 2024 income statement.
O $868800 on the 2023 income statement.
O $868800 on the 2024 retained earnings statement.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Retained earnings

VIEW

Step 2: Excel snip is as follows-

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Tacit or implicit knowledge, is personal, experiential, context-specific, and hard to formalize and communicate. True False
Assume that you accept the following ethical rule: “Failure to tell the whole truth is wrong.” In the textbook illustration about Santos’s problem with Ellis’s instructions, (a) what would this rule require Santosto do and (b) why is an unalterable rule such as this classified as an element of imperative ethical theory?
discuss how critical thinking skills will make you less likely to be influenced by arguments that are based on fallacies and faulty reasoning.
Provide best Answer As per posible fast
Critically evaluate how the breach of ethics by auditors could contribute to expand the audit expectation gap. Your report should include/address the following concerns: 1. Introduce/analyze ethical aspect of auditors and audit expectation gap. 2. Critically examine how different threats to ethics enlarge the audit expectation gap. 3. Propose ways to minimize the threats to ethics and thus the expectation gap of audits. 4. Determine the current developments and future direction of ethical aspects of auditors, and explain how such developments contribute to safeguard the audit profession as a concluding remarks. Include a cover page, an executive summary, a table of contents and references. You may include an appendix if necessary.
Urgent Please answer a soon as possible. Answer must be plagirism free What is the role of auditors and explain the importance of the role.
Search Google images for bad data visualizations. Post a link to the image.Describe what is inaccurate or misleading about the visualization. Replace the inaccurate and misleading information with what you think makes the image a good visualization.
Some accountants argue that the receiving department should be eliminated. Discuss the objective of eliminating the receiving function. What accounting/audit problems need to be resolved.
what exactly is a cookie jar reserve? Does using a cookie jar reserve follow GAAP? Does using a cookie jar reserve appear to be an ethical practice? Support your opinion. Your post should be more than a single sentence.
It says they answers are wrong from your example.
Select the best answer for each of the follwing items and give reasons for your choice. a. Which of the following best describes the relationship between assurance services and attest services? (1) While attest services involved financial data, assurance services involve nonfinancial data (2) While attest services require objectivity, assurance services do not require objectivity (3) All attest services require independence. (4) Attest and assurance services are different terms referring to the same types of services