4. Foreman Company is a large international canning company. Foreman uses straight-line depreciation for financial reporting purposes and accelerated depreciation for tax reporting. The company's tax rate is 35%. Selected financial information about Foreman appears below. Foreman Company Selected Financial data- December 31, 2020 2019 2018 $178,454 515,685 $162,369 424,545 $155,388 410,256 e Property, Plant & Equipment (net) Total Assets Deferred Tax Liability relating to Temporary Depreciation Differences Common Shareholders' Equity 25,138 302,754 18.245 298,564 19,689 289.455 Sales Cost of Goods Solde Depreciation Expense Interest Expense Net Income $986,258 693,857 48,265 84,253 124,581 $888,965 588,920 39,640 75,689 91,025 2 Required: a Compute the amount of depreciation expense that Foreman recognized for income tax purposes for year 2020 and 2019. The amount reported as the deferred tax liability relating to temporary depreciation differences represents the cumulative income tax delayed as of each balance sheet date because Foreman uses accelerated depreciation for tax purposes and straight-line depreciation for financial statement reporting. L For 2020 Temporary Depreciation Differences 25,138/35% 71,822.85 Depreciation for income tax purpose for year 2020=48,265+71,822.85=120,087.85 For 2019 Temporary Depreciation Differences=18,245/35%-52,128.57 Depreciation for income tax purpose for year 2019=39,640+52,128.57=91,768.57 Sanchez Corporation Assume that Sanchez Corp. has agreed to construct a new playground for Surrey County for $2,450,000. Construction of the new playground will begin on March 17, 2019 and is expected to be completed in August 2020. At the signing of the contract sanchez Corp. estimates that it will cost $1,750,000 to build the playground