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The longterm liabilities section of CPS Transportation's December 31, 2020, balance sheet included the following: IFV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1] (Use appropriate fectorts) from the tables provided.) a. A lease liability with 15 remaining lease payments of $34,000 each, due annually on January 1: Lease liability $253,697 Less: current portion 8,139 $256,468 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 $520,000. The machine's estimated useful life is ve years, with no salvage value. Depreciation is computed using the straightline method for nancial reporting purposes and the MACPS method for tax purposes, Depreciation expense for tax and nancial reporting purposes for 2021 through 2024 is as follows: HACRS Straightline Year Depreciation Depreciation Difference 2621 $166,666 $164,666 $ 56,666 2622 86,666 164,666 (24,666) 2623 26,666 164,666 (34,666) 2624 66,666 164, 666 (44,666) The enacted federal income tax rates are 20% for 2020 and 25% for 2021 through 2024. CPS had a deferred tax liability of $11,500 as of December 31, 2020. For the year ended December 31, 2021, CPS's income before income taxes was $920,000. On July 1, 2021, CPS Transportation issuecl $620,000 of 9% bonds. The bonds mature in 20 years, and interest is payable each January 1 and July 1. The bonds were issued at a price to yield the investors 1096. CPS records interest at the effective interest rate. The enacted federal income tax rates are 20% for 2020 and 25% for 2021 through 2024. CPS had a deferred tax liability of $11,500 as of December 31, 2020. For the year ended December 31, 2021, CPS's income before income taxes was $920,000. On July 1, 2021, CPS Transportation issued $620,000 of 9% bonds. The bonds mature in 20 years, and interest is payable each January 1 and July 1. The bonds were issued at a price to yield the investors 1096. CPS records interest at the effective interest rate. Req uired: 1- Determine CPS Transportation's income tax expense and net income for the year ended December 31, 2021. 2. Determine CPS Transportation's interest expense for the year ended December 31, 2021. 3. Prepare the longterm liabilities section of CPS Transportation's December 31, 2021, balance sheet. Complete this question by entering your answers in the tabs below. 1- Required 1 Required 2 Required 3 Determine CPS Transportation's income tax expense and net income for the year ended December 31, 2021. (Enter your answers in thousand.) lncorne before income taxes Income tax expense: Current Deferred 0 Net income 3 0 Required 2 ) 8 The enacted federal income tax rates are 20% for 2020 and 25% for 2021 through 2024. CPS had a deferred tax liability of $11,500 as of December 31, 2020. For the year ended December 31, 2021, CPS's income before income taxes was $920,000. On July 1, 2021, CPS Transportation issued $620,000 of 9% bonds. The bonds mature in 20 years, and interest is payable each 25 January1 and July 1. The bonds were issued at a price to yield the investors 1096. CPS records interest at the effective interest rate. points Required: 1. Determine CPS Transportation's income tax expense and net income for the year ended December 31, 2021. El 2. Determine CPS Transportation's interest expense for the year ended December 31, 2021. 933* 3. Prepare the longterm liabilities section of CPS Transportation's December 31, 2021, balance sheet. i Complete this question by entering your answers in the tabs below. Print [li Required 1 Required 2 Required 3 References _ Determine CPS Transportation's interest expense for the year ended December 31, 2021. (Do not round intermediate calculations. Round nal answers to the nearest whole dollars.) Lease obligation Bonds payable Tolal interest expense $ 0