In 2008, Flynn Company Has Changed from the Percentage-Of-Completion Method

In 2008, Flynn Company has changed from the percentage-of-completion method to the completed-contract method for long-term construction contracts. The difference in pre-tax income prior to 2008 is a decrease of $60,000 and for 2008 is a decrease of $20,000. The estimated tax effect is 40%. The journal entry made by Flynn Company should include a

A) debit to Deferred Tax Liability of $24,000.
B) credit to Deferred Tax Liability of $32,000.
C) debit to Deferred Tax Liability of $32,000.
D) credit to Deferred Tax Liability of $24,000.