The file attached has5 questions relation toaccounting ( long-term liabilities and differed taxes)

Long-term Liabilities Problem 3 On January 1, 2014 P&P purchased the $1,000,000 face value, 5 year, 8% bonds of Delta Products, a wholly owned subsidiary of P&P, on the open market for $960,000. The bonds are dated and were issued by Delta Products, on January 1, 2010. The bonds pay interest semiannually each January 1 and July 1. The effective interest method is used to amortize any premium or discount. The market rate is 10%. Make any necessary entries for Delta Products Problem 4 Assume that P&P wants to build a new warehouse. The CEO has stated that the building will cost $1.5 million. She has asked you to determine the dollar amount of bonds that P&P would have to issue to cover this cost, assuming that the bonds would have a stated interest rate of 8%, a 10-year term and the market rate is currently 6%. Deferred Taxes Problem 2 During 2014 P&P purchased $20,000 of computer equipment with an estimated life of 5 years and no salvage value. P&P uses the straight-line method to depreciate its computer equipment for book purposes and uses the MACRS depreciation for tax purposes. This creates a $5,000 difference in depreciation. P&P erroneously recorded the computers as equipment expense. P&P tax rate is 40%. Make the correcting entry Calculate the differed tax effect due to the depreciation of equipment Problem 3 In 2012 P&P had a net income of $10,000, and in 2013 a net operating loss of $50,000, and in 2014 reported a net income of $70,000. Assume a tax rate of 20% for all years presented. Prepare the entry that P&P should make in 2013 Prepare an entry for 2014 to record the effect of the net operating loss from 2013 Problem 4 Income before taxes - $900,000 Income before taxes included the following Interest income of $80,000 (from municipal bonds) Rental income was collected in advance in 2013 and earned in 2014 - $20,000 Depreciation per books - $40,000 and per income taxes - $100,000 Warranty expense in 2014 was $20,000 but for tax purpose only $5,000 was deductible Assume that at the beginning of 2014 the deferred tax asset balance = $8,000 due to the rent income. Tax rate for 2014 and the foreseeable future is 40% Calculate taxable income Make the necessary tax entry, make sure to include the amount for tax expense and deferred taxes