Today is the fiscal year end for the Benson Boat Company. The regular year-end interest payment on its 9% bonds payable was made earlier today. All necessary entries were recorded. Bonds Payable now has a balance of $186,400. The chief financial officer (CFO) has proposed buying back this debt in the open market later today for $175,000. The debt is not due for repayment for another seven years. Explain how this proposed action would affect this year’s
(a) Income statement,
(b) Balance sheet, and
(c) Statement of cash flows. Be specific.