Question 1 (6 Points) Andersen Corporation, a calendar year, accrual method. .corporation, is in the busness of manufacturing glass based product. In 2018, Andersen Corporation had taxable income before any limitations of $500,000. Andersen Corporation's had average annual gross receipts over the previous three tax years of $27,000,000. The following items of income and deductions are included in the computation of taxable income $400,000 interest expense $250,000 depreciation $30,000 interest income $75,000 amortization $100,000 research and development expenses . $200,000 executive compensation (4 points) Given the information above, how much interest expense can Andersen Corporation deduct in 2018? (2 points) How would your answer change if Andersen Corporation had average annual gross receipts of $23.000,000 over the previous three years? Question 2(4 points BashirInc., an accrual method C-Corporation, borrowed $100,000 at 5% norest to purchase a $100,000 City of Minneapolis bond yielding 8% interest. In 2018, Bashir, Inc. incurred $5,000 n interest expense on the loan and $8,000 of interest inoome on the bond. Furthermore, in 2018, interest rates fell and the value of the bond increased to $115.000. Sara sold the bond on December 31, 2018 for $115,000. How much income and deduction must Bashir, Inc recognize in 2018? Please show your work and explain your answer Question 1 (6 Points) Andersen Corporation, a calendar year, accrual method. .corporation, is in the busness of manufacturing glass based product. In 2018, Andersen Corporation had taxable income before any limitations of $500,000. Andersen Corporation's had average annual gross receipts over the previous three tax years of $27,000,000. The following items of income and deductions are included in the computation of taxable income $400,000 interest expense $250,000 depreciation $30,000 interest income $75,000 amortization $100,000 research and development expenses . $200,000 executive compensation (4 points) Given the information above, how much interest expense can Andersen Corporation deduct in 2018? (2 points) How would your answer change if Andersen Corporation had average annual gross receipts of $23.000,000 over the previous three years? Question 2(4 points BashirInc., an accrual method C-Corporation, borrowed $100,000 at 5% norest to purchase a $100,000 City of Minneapolis bond yielding 8% interest. In 2018, Bashir, Inc. incurred $5,000 n interest expense on the loan and $8,000 of interest inoome on the bond. Furthermore, in 2018, interest rates fell and the value of the bond increased to $115.000. Sara sold the bond on December 31, 2018 for $115,000. How much income and deduction must Bashir, Inc recognize in 2018? Please show your work and explain your