What is the amount of net income after tax that Vignette Company shouldreport for the year 2021? Vignette Construction Company changed from completed contract method to the percentageof completion method of accounting for long-term construction contracts during 2021. For taxpurposes, the company employs the completed contract method and will continue thisapproach in the future.The appropriate information related to this change is as follows:Pre-tax Income from20202021Percentage of Completion2,028,0001,820,000Completed Contract1,534,0001,248,000Income tax rate is 35%.What is the amount of net income after tax that Vignette Company should report for the year2021?

Net income appears on both the income statement and the statement of owner's equity.

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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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Question

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?

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