If the percentage of completion method had been used, the The cumulative effect of the accounting change should be a. Retained earnings statement as P2,000,000 credit Problem 8-16 (AICPA Adapted) On January 1, 2021, Poe Construction Company changed to the percentage of completion method from cost recovery method of income recognition. On December 31, 2020, the entity compiled data showing that income under the cost recovery method aggregated P7,000,000. If the percentage of completion method had been used, the accumulated income through December 31, 2020 would have been P9,000,000. The income tax rate is 30%. reported in the 2021 a. Retained earnings statement as P2,000,000 cre adjustment to the beginning balance. b. Income statement as P2,000,000 credit. c. Retained earnings statement as a P1,400,000 d adjustment to the beginning balance. d. Income statement as a P1,400,000 credit.

If the percentage of completion method had been used, the The cumulative effect of the accounting change should be a. Retained earnings statement as P2,000,000 credit Problem 8-16 (AICPA Adapted) On January 1, 2021, Poe Construction Company changed to the percentage of completion method from cost recovery method of income recognition. On December 31, 2020, the entity compiled data showing that income under the cost recovery method aggregated P7,000,000. If the percentage of completion method had been used, the accumulated income through December 31, 2020 would have been P9,000,000. The income tax rate is 30%. reported in the 2021 a. Retained earnings statement as P2,000,000 cre adjustment to the beginning balance. b. Income statement as P2,000,000 credit. c. Retained earnings statement as a P1,400,000 d adjustment to the beginning balance. d. Income statement as a P1,400,000 credit.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...

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