A Company Changes from Percentage-Of-Completion to Completed-Contract Method, Which Is

Multiple Choice

A company changes from percentage-of-completion to completed-contract method, which is used for tax purposes. The entry to record this change should include a

A) debit to Construction in Process.
B) debit to Loss on Long-term Contracts in the amount of the difference on prior years, net of tax.
C) debit to Retained Earnings in the amount of the difference on prior years, net of tax.
D) credit to Deferred Tax Liability.