Concord 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.     Pretax Income from:     Percentage-of-Completion   Completed-Contract   Difference 2020   $747,000   $539,000   $208,000 2021   673,000   468,000   205,000 (a) Assuming that the tax rate is 30%, what is the amount of net income that would be reported in 2021?

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Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.