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On January 1, 2025, Pharoah Corporation changed to the percentage-of-completion method of income recognition. This change is justified by Pharoah Corporation. On December 31, 2024, Pharoah's Retained Earnings balance was $1560000. Pharoah calculated that, if the percentage-of-completion method had been used, the accumulated impact on net income (before taking into consideration any income tax effects) would have been an additional $260000 of revenue in 2024. If Pharoah's income tax rate is 25%, one of the impacts of this accounting change would be an increase to Income Tax Payable of $65000. an increase to Income Tax Expense of $65000 in 2025. a decrease to Income Tax Payable of $65000. O an increase to Construction in Progress of $195000 on December 31, 2024.

On January 1, 2025, Pharoah Corporation changed to the percentage-of-completion method of income recognition. This change is justified by Pharoah Corporation. On December 31, 2024, Pharoah's Retained Earnings balance was $1560000. Pharoah calculated that, if the percentage-of-completion method had been used, the accumulated impact on net income (before taking into consideration any income tax effects) would have been an additional $260000 of revenue in 2024 . If Pharoah's income tax rate is 25%, one of the impacts of this accounting change would be an increase to Income Tax Payable of $65000. an increase to income Tax Expense of $65000 in 2025. a decrease to Income Tax Payable of $65000. an increase to Construction in Progress of $195000 on Decernber 31, 2024

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