Question #2 (16 marks) As an accountant, you are required to check the following independent inquiries. Specifically, you are expected to COMMENT on the given numbers and the accounting reporting and classification whether it is correct or not. If it is wrong, Provide Calculations of the correct answer and EXPLAIN the correct reporting and classifications. Provide entries whenever needed. A. ABC Company issued a 3-year, $300,000 note at 7% fixed interest rate paid semiannually. It was issued on January 1, 2020. Accordingly, ABC entered into an interest rate swap where it agrees to receive 7% fixed and pay a variable rate of 6.7% for the first half of the year and 7.5% for the second half. The company's accountant classified this transaction as cash flow hedge. A net interest expense of $22,500 was reported with no income effect as of December 31.(6.5 marks) B. On December 31, 2020, Valley Co. has a defined benefit obligation of $167,500 and pension plan assets with a fair value of $172,500. The company has vested benefits of $112,500 and a liability gain of $4,150. Valley's accountants reported net pension amount of $113,350 in the current assets section and reported the liability gain under other revenues on the income statement. (2.5 marks) C. ALT Company purchased a put option on ZMAN shares on January 2, 2019, for $230. The option is for 350 shares and the strike price is $60. The option expires on August 1, 2019. On June 30, ZMAN's shares had a market share of $59 and the put option had a time value of $69. On July 25, ALT decides to settle the put option on ZMAN's shares when the market price of shares was $55 and time value of the option contract was $31. The put option's balance before July 25 was $ 419. On July 25, ALT's accountant debited cash and credited put option for $1,400. (7 marks)