Hawkins corporation began construction on a motel on march 31, 2018. the project was completed on april 30, 2019. no new loans were required to fund construction. hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction perios: $4,000,000 6% note $16,000,000 10% bonds construction expenditures incurred were as follows: march 31, 2018 $4,000,000 june 30, 2018 6,000,000 november 30, 2018 1,800,000 february 28, 2019 3,000,000 the company's fiscal year-end is december 31. required: calculate the amount of interest capitalized for 2018 and 2019.

Kandon enterprises, inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. both divisions are considered separate components as defined by generally accepted accounting principles. the horse division has been unprofitable, and on november 15, 2018, kandon adopted a formal plan to sell the division. the sale was completed on april 30, 2019. at december 31, 2018, the component was considered held for sale. on december 31, 2018, the company’s fiscal year-end, the book value of the assets of the horse division was $415,000. on that date, the fair value of the assets, less costs to sell, was $350,000. the before-tax loss from operations of the division for the year was $290,000. the company’s effective tax rate is 40%. the after-tax income from continuing operations for 2018 was $550,000. required: 1. prepare a partial income statement for 2018 beginning with income from continuing operations. ignore eps disclosures. 2. prepare a partial income statement for 2018 beginning with income from continuing operations. assuming that the estimated net fair value of the horse division’s assets was $700,000, instead of $350,000. ignore eps disclosures.