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Posted: October 7th, 2022
Wertz Construction Company decided at the beginning
Wertz Construction Company decided at the beginning of 2012 to change from the completedcontract method to the percentage-of-completion method for financial reporting purposes. The company will continue to use the completed-contract method for tax purposes. For years prior to 2012, pretax income under the two methods was as follows: percentage-of-completion $120,000, and completedcontract $80,000. The tax rate is 35%. Prepare Wertzâs 2012 journal entry to record the change in accounting principle.
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