The long$-$term liabilities section of CPS Transportation$$s December $31,2023,$ balance sheet included the following: $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

A lease liability with $15$ remaining lease payments of $$24,000$ each, due annually on January $1$:

Lease liability $ $182,546$

Less: current portion $5,745$

$ $176,801$

The incremental borrowing rate at the inception of the lease was $11\%$ and the lessor$$s implicit rate, which was known by CPS Transportation, was $10\%.$

A deferred income tax liability due to a single temporary difference. The only difference between CPS Transportation$$s taxable income and pretax accounting income is depreciation on a machine acquired on January $1,2023,$ for $$420,000.$ 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 purposes. Depreciation expense for tax and financial reporting purposes for $2024$ through $2027$ is as follows:

Year MACRS Depreciation Straight$-$line Depreciation Difference

$2024$ $ $120,000$ $ $84,000$ $ $36,000$

$202560,00084,000(24,000)$

$202650,00084,000(34,000)$

$202740,00084,000(44,000)$

The enacted federal income tax rates are $20\%$ for $2023$ and $25\%$ for $2024$ through $2027.$ CPS had a deferred tax liability of $$16,500$ as of December $31,2023.$ For the year ended December $31,2024,$ CPS$$s income before income taxes was $$820,000.$

On July $1,2024,$ CPS Transportation issued $$520,000$ 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 $10\%.$ CPS records interest at the effective interest rate.

Required:

Determine CPS Transportation$$s income tax expense and net income for the year ended December $31,2024.$

Determine CPS Transportation$$s interest expense for the year ended December $31,2024.$

Prepare the long$-$term liabilities section of CPS Transportation's December $31,2024,$ balance sheet.