View the attached image and answer questions 1 and 3. Show all work. (Note: The answer to 1 is $714,750 and the answer to 3 is $160,000, but I need to know how to arrive at those solutions.)

You have obtained the following schedule of long-term debt from McNeil Company for the audit of financial statements for the year ended December 31, year 3. Notes Interest Due Date yer 3 AdditionsPayments 12/31/year3 payable Rate Description Mortgage | 6.25% 16/30/year12 | $1,104,000 Beginning Balance Ending Balance 0 $96,000 $1,008,000 Payable | 12/3 l/year 141 | 4/30/year 3 | 4/30/year 13 NowNUnsecured 16.00% ryle 7,500,000 0 625,000 6,875,000 31 Notes Payable Secured | 3,000,000 | 5.75% 0 3,000,000 0 57 Bonds Convertible | 4.00% 01 $6,000,000 0 6,000,000 bok Debentures Total 5.50% si 1,604,0001 $6,000,000 | $3,721,000 | $ 13,883,000 | ,7s0 Additional information: Mortgage payable and unsecured notes payable are paid with related interest at the end of each month. Secured bond was paid on the due date. The interest on this bond was payable yearly and it was Convertible debentures were issued on May 1, year 3. The interest on this debt is payable yearly paid on April 30, year 3 on the anniversary day of the debt issuance. 1. The auditor's expectation with regard to interest expense is v714,7 2. The interest expense recorded on the company's books for year 3 is $782,500. The auditor most likely will conclude that: d Bon AAAS e for COM 3. The auditor's expectation for interest payable ecember 31, year 5 is