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The long-term liabilities section of DSU Transportation's December 31, 2020, balance sheet included the following: a. A lease liability with 15 remaining lease payments of $48,000 each, due annually on January 1 : The incremental borrowing rate at the inception of the lease was 11% and the lessor's implicit rate, which was known by DSU Transportation, was 10%. b. A deferred income tax liability due to a single temporary difference. The only difference between DSU Transportation's taxable income and pretax accounting income is depreciation on a machine acquired on January 1,2020 , for $660,000. The machine's estimated useful life is five years, with no salvage value. Depreciation is computed using the straight-line method for financial reporting purposes and the MACRS method for tax numnses Depreciation expense for tax and financial reporting purposes for 2021 through 2024 is as follows: The enacted federal income tax rates are 20% for 2020 and 25% for 2021 through 2024 . DSU Transportation had a deferred tax liability of $4,500 as of December 31,2020 . For the year ended December 31, 2021, CPS's income before income taxes was $1060000. On July 1, 2021, DSU Transportation issued $760,000 of 9% bonds. The bonds mature in 10 years, and interest is payable each January 1 and July 1 . The bonds were issued at a price to yield the investors 10%. DSU Transportation records interest at the effective interest rate. Required: 1. Determine DSU Transportation's income tax expense, current and deferred, and net income for the year ended December 31, 2021. 2. Determine DSU Transportation's interest expense for the year ended December 31, 2021. 3. Prepare the long-term liabilities section of DSU Transportation's December 31, 2021, balance sheet Required 1 DSU Transportation Income Tax Expense and Net Income For the Year Ended December 31, 2021 Required 2 DSU Transportation Calculation of Interest Expense For the Year Ended December 31, 2021 Required 3 DSU Transportation Long-Tem Liabilities Section of Balance Sheet December 31, 2021 The long-term liabilities section of DSU Transportation's December 31, 2020, balance sheet included the following: a. A lease liability with 15 remaining lease payments of $48,000 each, due annually on January 1 : The incremental borrowing rate at the inception of the lease was 11% and the lessor's implicit rate, which was known by DSU Transportation, was 10%. b. A deferred income tax liability due to a single temporary difference. The only difference between DSU Transportation's taxable income and pretax accounting income is depreciation on a machine acquired on January 1,2020 , for $660,000. The machine's estimated useful life is five years, with no salvage value. Depreciation is computed using the straight-line method for financial reporting purposes and the MACRS method for tax numnses Depreciation expense for tax and financial reporting purposes for 2021 through 2024 is as follows: The enacted federal income tax rates are 20% for 2020 and 25% for 2021 through 2024 . DSU Transportation had a deferred tax liability of $4,500 as of December 31,2020 . For the year ended December 31, 2021, CPS's income before income taxes was $1060000. On July 1, 2021, DSU Transportation issued $760,000 of 9% bonds. The bonds mature in 10 years, and interest is payable each January 1 and July 1 . The bonds were issued at a price to yield the investors 10%. DSU Transportation records interest at the effective interest rate. Required: 1. Determine DSU Transportation's income tax expense, current and deferred, and net income for the year ended December 31, 2021. 2. Determine DSU Transportation's interest expense for the year ended December 31, 2021. 3. Prepare the long-term liabilities section of DSU Transportation's December 31, 2021, balance sheet Required 1 DSU Transportation Income Tax Expense and Net Income For the Year Ended December 31, 2021 Required 2 DSU Transportation Calculation of Interest Expense For the Year Ended December 31, 2021 Required 3 DSU Transportation Long-Tem Liabilities Section of Balance Sheet December 31, 2021