Oriole Home Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method prior to 2024. In 2024, it changed to the percentage-of-completion method. The company decided to use the same for income tax purposes. The tax rate enacted is 20%. Income before taxes under both the methods for the past three years appears below. Completed contract Percentage-of-completion 2022 O $366000 O $188000 O $66000 O $300000 2023 705000 2024 $405000 $273000 $141000 339000 225000 What amount will be debited to Construction-in-Process to record the change at the beginning of 2024?

Oriole Home Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method prior to 2024. In 2024, it changed to the percentage-of-completion method. The company decided to use the same for income tax purposes. The tax rate enacted is 20%. Income before taxes under both the methods for the past three years appears below. Completed contract Percentage-of-completion 2022 O $366000 O $188000 O $66000 O $300000 2023 705000 2024 $405000 $273000 $141000 339000 225000 What amount will be debited to Construction-in-Process to record the change at the beginning of 2024?

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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