The long-term liabilities section of CPS Transportation's December 31, 2020, balance sheet included the following: (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) a. A lease liability with 15 remaining lease payments of $32,000 each, due annually on January 1: Lease liability Less: current portion $243,395 7,660 $235,735 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, 2020, for $500,000. 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 2021 through 2024 is as follows: MACRS Straight-line Depreciation Year Depreciation Difference 2021 $152,000 $100,000 $ 52,000 2022 76,000 100,000 (24,000) 2023 66,000 2024 56,000 100,000 100,000 (34,000) (44,000) The enacted federal income tax rates are 20% for 2020 and 25% for 2021 through 2024. CPS had a deferred tax liability of $12,500 as of December 31, 2020. For the year ended December 31, 2021, CPS's income before income taxes was $900,000. On July 1, 2021, CPS Transportation issued $600,000 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: