Whirlwind Cycles is owned 100% by Daniel, a single taxpayer. Both Whirlwind Cycles and Daniel use the cash method of accounting for tax purposes. The business incurred the following items of income and expense in Year 2: Cash Sales $225,000 Interest received from City of Flint Bonds [this is a municipal bond] 3,000 Cost of Goods Sold [assume cash paid in Year 2] 45,000 Cash payments for Year 2 utilities 3,500 Cash payments for Year 2 rent 13,000 Tax depreciation 40,000 Cash contribution to the Democratic party [not deductible for tax purposes] 1,000 On 111, Year 1, Whirlwind Cycles purchased a 60-month zero coupon bond with a 5% yield and a $20,000 maturity value for $15,o?0 [compounded annually]. Daniel's taxable income is $ 100,000 m any profits from the business are considered. Daniel files as a single tax payer. Whirl Cycles is organized as a C Corporation and the corporation pays all of its after-tax cash flows to Daniel as a dividend. [a] How much interest income does Whirlwind cycles need to recognize from the zero coupon bond in Year 2? (5 pts] [b] What is the taxable income of Whirlwind Cycles in Year 2? (5 pts] [c] What is the after-tax cash flow of Whirlwind Cycles in Year 2? [5 pts] Hint: the total tax due in Year 2 of Whirlwind Cycles is 25,050 [d] Calculate Daniel's Year 2 after-tax cash flows fi'om the Whirlwind Cycles. [5 pts] Hint: This is a dividend payment. So consider what is tax rate Daniel needs to pay on the cash payment