On January 1, 2016, Green Contractors agreed to construct a building at a contract price of $5,000,000. Green estimates that the project will be finished in 2018. Information related to the costs and billings for this contract are as follows: 2016 2017 2018 Total costs incurred to date $1,500,000 $3,300,000 $4,600,000 Estimated costs to complete $2,400,000 $1,000,000 $0 Customer billings to date $1,200,000 $2,700,000 $4,500,000 Collections to date $1,000,000 $2,500,000 $4,500,000 Instructions: Assuming the building was finished in 2018, calculate the gross profit that would be recorded for 2016, 2017 and 2018 using the 1. Completed contract method 2. Percentage of completion method Maximum number of characters (including HTML tags added by text editor): 32,000 Show Rich-Text Editor (and character count) Marimarsh Corporation reported the pretax financial income (loss) for the years 2015 to 2018 2015 $240,000 2016 $315,000 2017 $125,000 2018 ($562,000) Pretax financial income (loss) and taxable income (loss) were the same for all years. The applicable tax rates are 32% for 2015 and 2016, and 40% for 2017 and 2018. Assume carrybacks are allowed. Instructions 1. Prepare the journal entry in 2017 to record income tax expense 2. Prepare the journal entries in 2018 for the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of evidence it is more likely than not that one-quarter of the benefits of the loss carryforward will not be realized Maximum number of characters (including HTML tags added by text editor): 32,000 Show Rich-Text Editor (and character count) Java Update Available A new version of Java is installed. Click here to continue. Java Update Checker