Vignette Construction Company changed from completed contract method 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: Pre-tax Income from 2020 2021 Percentage of Completion 2,028,000 1,820,000 Completed Contract 1,534,000 1,248,000 Income tax rate is 35%. What is the amount of net income after tax that Vignette Company should report for the year 2021?

Vignette Construction Company changed from completed contract method 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: Pre-tax Income from 2020 2021 Percentage of Completion 2,028,000 1,820,000 Completed Contract 1,534,000 1,248,000 Income tax rate is 35%. What is the amount of net income after tax that Vignette Company should report for the year 2021?

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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