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Swifty Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for longterm...

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Accounting

Swifty Construction Company changed from the completed-contract to the percentage-of-completion method of accounting for longterm construction contracts during 2021. For tax purposes, the company employs the completed-contract 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.
\table[[Pretax Incomefrom:,],[,Percentage-of-Completion,Completed-Contract,Difference],[2020,$750,000,$623,000,$127,000
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