Exercise 17B-25 On January 2, 2017, Buffalo Company issues a 5-year, $11,600,000 note at LIBOR, with interest paid annually. The variable rate is reset at the end of each year. The LIBOR rate for the first year is 6.70% Buffalo Company decides it prefers fixed-rate financing and wants to lock in a rate of 7%. As a result, Buffalo enters into an interest rate swap to pay 7% fixed and receive LIBOR based on $11,600,000. The variable rate is reset to 7.70% on January 2, 2018 (a) Compute the net interest expense to be reported for this note and related swap transactions as of December 31, 2017 Net interest expense December 31, 2017 (b) Compute the net interest expense to be reported for this note and related swap transactions as of December 31, 2018. Net interest expense December 31, 2018