Problem
At the beginning of 2025, pronghorn construction co changed from the cost recovery method to recognizing revenue over time for financial reporting purposes. the company will continue to use the cost-recovery method for tax purposes, for years prior to 2025 pretax income under the two methods was a follows: percentage of completion $143,000, and cost recovery $97,240. The tax rate is 20%. Prepare Pronhorns 2025 JE to record the change in accounting principle.