The 2004 annual report of Eastman Kodak Company (Kodak) included the following information (all dollar amounts are in millions):
2004
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 169
Earnings from continuing operations (before taxes) . . . . . . . . . . . . . (94)
Net property, plant, and equipment. . . . . . . . . . . . . . . . . . . . . . . . . 4,512
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,737
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,926
Total equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,811
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . 1,168
Net cash used in investing activities . . . . . . . . . . . . . . . . .. . . . . . . . (120)
Net cash used in financing activities . . . . . . . . . . . . . . . . . . . . . . . (1,066)
Interest capitalized during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1. Recompute all the amounts given, assuming that all the capitalized interest for 2004 was expensed. Ignore income taxes and the possibility of same-year depreciation of interest capitalized in 2004.
2. Repeat (1) assuming that, of the $2 million of interest capitalized in 2004, Kodak had depreciated $1 million in that same year.