Current Attempt in Progress Bramble Construction Company changed from the cost-recovery to the percentage-of-completion method of accounting for long- term construction contracts during 2026. For tax purposes, the company employs the cost-recovery 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. 2025 2026 (a) Pretax Income from Percentage-of-Completion Net income $858,000 785,000 Cost-Recovery Difference $585,000 $273,000 315,000 470,000 Assuming that the tax rate is 30%, what is the amount of net income that would be reported in 2026?

Current Attempt in Progress Bramble Construction Company changed from the cost-recovery to the percentage-of-completion method of accounting for long- term construction contracts during 2026. For tax purposes, the company employs the cost-recovery 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. 2025 2026 (a) Pretax Income from Percentage-of-Completion Net income $858,000 785,000 Cost-Recovery Difference $585,000 $273,000 315,000 470,000 Assuming that the tax rate is 30%, what is the amount of net income that would be reported in 2026?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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