Question 1 shamrock industries inc. started construction of a manufacturing facility for its own use at an estimated cost of $8,400,000 on january 1, 2017. shamrock expected to complete the building by december 31, 2017. shamrock's debt, all of which was outstanding during the construction period, was as follows. construction loan-11.00% interest, payable semiannually, issued december 31, 2016. s,200,000) · long-term loan #1-10.00% interest, payable on january 1 of each year. principal payable on january 1, 2019, s.260 ,000 . long-term loan #2-12.00% interest, payable on december 31 of each year. principal payable on december 31, 2025: $2940,000 assume that shamrock completed the facility on december 31, 2017, at a total cost of $8,652,000, and the weighted-average amount of accumulated expenditures was $5,712,000. compute the avoidable interest on this project. (use interest rates rounded to 2 decimal places, eg, 7.58% and round final answer to 0 decimal places, eg. 5,275.) avoidable interest s compute the depreciation expense for the year ended december 31, 2018. shamrock estimated the facility's useful life to be 25 years with a salvage value of $840,000 shamrock elected to depreciate the facility on a straight-line basis. depreciation expense ,

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.