Redo E but add taxes from Problem F

Long-Term Debt Problem F Fair Value Option Accounting with TAXES Redo problem F with taxes in the picture. Assume a marginal tax rate of 20%. Assume historical cost accounting is the tax treatment for bonds and interest (which it is). Assume income is $100,000 (excluding any interest or fair value gains and losses). Assume all of this income is currently taxable REQUIRED A. What entry (or entries) does UMovelT make related to these bonds during 2016 and 2017, including any deferred tax entries? B. Assume that the market rate of interest for these bonds falls from 9% to 7% on January 1, 2018, and that UMovelT uses fair value accounting. What entries does UMovelT make related to these bonds during 2018, including any deferred tax entries? C. At what amount would the bond liability, income taxes payable, and any deferred taxes appear on the balance sheets at end of 2016, 2017, and 2018 (also do beginning of 2018). How will the income statement look for the 2016-2018 years? D. How would the statement of cash flows - indirect method look for the 2016-2018 years? Assume taxes are paid in the year following (i.e., 2016 taxes are paid in 2017, etc.) Long-Term Debt Problem F Fair Value Option Accounting with TAXES Redo problem F with taxes in the picture. Assume a marginal tax rate of 20%. Assume historical cost accounting is the tax treatment for bonds and interest (which it is). Assume income is $100,000 (excluding any interest or fair value gains and losses). Assume all of this income is currently taxable REQUIRED A. What entry (or entries) does UMovelT make related to these bonds during 2016 and 2017, including any deferred tax entries? B. Assume that the market rate of interest for these bonds falls from 9% to 7% on January 1, 2018, and that UMovelT uses fair value accounting. What entries does UMovelT make related to these bonds during 2018, including any deferred tax entries? C. At what amount would the bond liability, income taxes payable, and any deferred taxes appear on the balance sheets at end of 2016, 2017, and 2018 (also do beginning of 2018). How will the income statement look for the 2016-2018 years? D. How would the statement of cash flows - indirect method look for the 2016-2018 years? Assume taxes are paid in the year following (i.e., 2016 taxes are paid in 2017, etc.)