1. Party A and B enter into a contract. The contract is based on notional amount of S50 million. A pays 1 year LIBOR and B pays a fixed rate 500 . In year I, LIBOR ?s 4% and payments are made annually. A and B entered into the swap on September 1,2016. A and B are both calendar year taxpayers. A. Is this contract a notional principal contract? B. Are the payments periodic? C. How much income and expense do A and B have in 2016 D. Would the answer in C change if A was a cash method taxpayer