Prepare adjusting entries for the following year-end adjustments.

1)Income tax expense (use a 25% tax rate)

2)Building depreciation (assume straight-line, 25-year life, and no salvage).

3)Equipment depreciation (assume straight-line, 15-year life, and no salvage)

4)Mortgage interest payable at 12/31/21 is $25,000 (the interest will be paid in January 2022). Note: The loan is currently set-up interest only. Therefore, no principal was paid or was due in 2021.

5)Long-term debt interest payable at 12/31/21 is $160,000 (the interest will be paid in January 2022). Note: The loan is currently set-up interest only. Therefore, no principal was paid or was due in 2021.