The long-term labilitles section of CPS Transportation's December 31, 2017, baance sheet Included the following: (FV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) a. A lease labillity with 15 remalning lease payments of $18,000 each, due annually on January 1: $174,828 7,511 Lease liability Less: current portion $167,389 The Incremental borrowing rate at the inception of the lease was 7% and the lessor's implicit rate, which was known by CPS Transportation, was 696. b. A deferred Income tax llablity due to a single temporary difference.The only difference between CPS Transportation's taxable Income and pretax accounting Income is depreclation on a machine acquired on January 1, 2017, for $400,000. The machines estimated useful Iife Is five years, with no salvage value. Depreclation Is computed using the straight-line method for financial reporting purposes and the MACRS method for tax purposes. Depreclation expense for tax and financial reporting purposes for 2018 throug!h 2021 Is as follows: HACRS Straight-line Year 2818 2819 2828 2821 Difference $88,800 80,800 80,800 80,800 $128,e00 $ 48,888 60,800 50,800 40,800 (28,888) (38,808) (48,808) The enacted federal income tax rates are 35% for 2017 and 40% for 2018 through 2021. For the year ended December 31, 2018, CPS's Income before Income taxes was $800,000. On July 1, 2018. CPS Transportation issued $500,000 of 5% bonds. The bonds mature in 12 years and interest is payable each January 1 and July 1. The bonds were issued at a price to yield the investors 6%. CPS records interest at the effective interest rate. Required: 1. Determine CPS Transportation's Income tax expense and net Income for the year ended December 31, 2018. 2 Determine CPS Transportation's Interest expense for the year ended December 31, 2018. 3. Prepare the long-term llablties section of CPS Transportation's December 31, 2018, balance sheet