Simantel, a marketing communications and strategy consulting firm is assisting a client to understand the effects of promotional offers on consumer purchases. they propose the company consider offering three different versions of a coupon that would be mailed to purchasers. the value of the coupon would be manipulated and the company could track the return of the coupon and how much money was spent by the purchaser. simantel recommends that the coupon offers vary between $1 and $5 and suggests three different versions: $1, $3, and $5. the client would select three groups of consumers to receive the coupon offer and a random process would be utilized to determine which coupon offer a consumer would receive. the research will provide important insights about consumer purchasing habits and which coupon offer would lead to the highest level of sales and coupon redemption. this is an example of research.

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.