Would you please explain how to put the information into an income statement and balance sheet for each option?

Probleui 1-27A Importance of cost classificarion CHECK FIGURE Campbell Manufacturing Company (CMC) was started when it acquired $80.000 by issuing common stock. During the first year of operations, the company incurred specifically entifiable product costs (materials, labor, and overthcad) amounting incurred $60,000 of engineering design and planning costs. There was a debate regarding how he design and planning costs should be classified. Advocates of Option I believe that the costs hould be classified as general, selling, and administrative costs. Advocates of Option 2 believe t is more appropriate to classify the design and planning costs as product costs. Duri ear, CMC made 5.000 units of product and sold 4,000 units at a price of $35 each. All transactions were cash transactions. n. Option tN $20,000 Option 2 Total ascote $112,000 to $75,000. CMC also Required Page 41 a. Prepare a GAAP-based income statement and balance sheet under each of the two options b. Identify the option that re sults in financial statements that are more likely to leave a favorable impression on investors and creditors c. Assume that CMC provides an incentive bonus to the company president equal to 20 percent of net income. Compute the amount of the bonus under each of the two options. Identify the option that provides the president with the higher bonus. option that minimizes the amount of the company's income tax expense company as indicated in Requirement d. Describe an incentive compeisation plan that would avoid a conflict of intereat a 30 percent income tax rate. Determine the amount of income tax expense under each of the two options. Identify the e. Comment on the conflict of interest between the company president as determined in Requirement c and the owners of the between the president and the owners