Shelley Construction Began Operations in 2014 and Appropriately Used the Completed-Contract

question 114

Essay

Shelley Construction began operations in 2014 and appropriately used the completed-contract method in accounting for its long-term construction contracts. The prepared the following information:


Effective January 1, 2016, Shelley changed to the percentage-of-completion method tax reporting and can justify the change; the company's tax rate is 35%. It determines the construction and revenue expense amounts under the percentage of completion method to be:


Required:
1) How would the company account for the change?
2) Prepare the journal entries to reflect the changes.

Identify various strategies used in solution-based counseling, including the use of client's language and compliments.

Understand the importance of a collaborative approach in solution-based counseling and its assumptions.

Learn how solution-based counseling is suitable for diverse populations through strengths identification and flexibility in goal setting.

Grasp the concept of using the Beginner's Mind in solution-based counseling to avoid assumptions about the client's experiences.

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Definitions:

Operating Income

The profit realized from a business's core operating activities, excluding deductions of interest and taxes.

Invested Assets

Assets that are purchased or acquired for the purpose of generating income or appreciating in value.

Managerial Efficiency

Refers to the effectiveness with which managers utilize resources to achieve an organization's objectives and optimize operations.

Investment Turnover

A ratio that measures the efficiency of a company in generating sales from its investments in assets.