The long-term liabilities section of CPS Transportation's December 31, 2017, balance sheet included the following: (FV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use approprlate factor(s) from the tables provlded.) a. A lease liability with 13 remaining lease payments of $16,000 each, due annually on January 1: Lease liability $113,654 4,635 Less: current portion $189,819 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%. b. 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, 2017, for $580,000. 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 2018 through 2021 is as follows: MACRS Straight-line Year 2818 2819 2828 2821 $116,808 116,808 116,808 116,808 Difference s66,808 (25,808) (35,808) (45,888) $182,888 91,8e8 81,808 71,80e 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 $980,000. On July 1, 2018, CPS Transportation issued $680,000 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. Requlrec: 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 Requlred: 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 liabilities section of CPS Transportation's December 31, 2018, balance sheet. Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Determine CPS Transportation's income tax expense and net income for the year ended December 31, 2018 CPS TRAN SPORTATION Income Tax Expense and Net Income For the Year Ended December 31, 2018 Income before income taxes S 980,000 Income tax expense: Current Deferred Net income S 980,000 Required 2 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 liabilities section of CPS Transportation's December 31, 2018, balance sheet. Complete this question by entering your answers in the tabs below Required 1Required 2Required 3 Determine CPS Transportation's interest expense for the year ended December 31, 2018. (Do not round intermediate calculations. Round final answers to the nearest whole dollars.) CPS TRAN SPORTATION Calculation of Interest Expense For the Year Ended December 31, 2018 Capital lease obligation interest Bond interest payable Total interest expense 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 liabilities section of CPS Transportation's December 31, 2018, balance sheet Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the long-term liabilities section of CPS Transportation's December 31, 2018, balance sheet.(Do not round intermediate calculations. Round final answers to the nearest whole dollars.) CPS TRANSPORTATION Long-Term Liabilities Section of Balance Sheet December 31, 2018 Long-term liabilities Lease liability Less: current portion Bonds payable, net Deferred income tax liability Total long-term liabilities The long-term liabilities section of CPS Transportation's December 31, 2017, balance sheet included the following: (FV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use approprlate factor(s) from the tables provlded.) a. A lease liability with 13 remaining lease payments of $16,000 each, due annually on January 1: Lease liability $113,654 4,635 Less: current portion $189,819 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%. b. 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, 2017, for $580,000. 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 2018 through 2021 is as follows: MACRS Straight-line Year 2818 2819 2828 2821 $116,808 116,808 116,808 116,808 Difference s66,808 (25,808) (35,808) (45,888) $182,888 91,8e8 81,808 71,80e 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 $980,000. On July 1, 2018, CPS Transportation issued $680,000 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. Requlrec: 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 Requlred: 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 liabilities section of CPS Transportation's December 31, 2018, balance sheet. Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Determine CPS Transportation's income tax expense and net income for the year ended December 31, 2018 CPS TRAN SPORTATION Income Tax Expense and Net Income For the Year Ended December 31, 2018 Income before income taxes S 980,000 Income tax expense: Current Deferred Net income S 980,000 Required 2 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 liabilities section of CPS Transportation's December 31, 2018, balance sheet. Complete this question by entering your answers in the tabs below Required 1Required 2Required 3 Determine CPS Transportation's interest expense for the year ended December 31, 2018. (Do not round intermediate calculations. Round final answers to the nearest whole dollars.) CPS TRAN SPORTATION Calculation of Interest Expense For the Year Ended December 31, 2018 Capital lease obligation interest Bond interest payable Total interest expense 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 liabilities section of CPS Transportation's December 31, 2018, balance sheet Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the long-term liabilities section of CPS Transportation's December 31, 2018, balance sheet.(Do not round intermediate calculations. Round final answers to the nearest whole dollars.) CPS TRANSPORTATION Long-Term Liabilities Section of Balance Sheet December 31, 2018 Long-term liabilities Lease liability Less: current portion Bonds payable, net Deferred income tax liability Total long-term liabilities