Problem 1 (Use the facts below to answer Problem 1, Questions 1, 2, and 3) 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 the year 2021: On 1/1/2020 (last year) Whirlwind Cycles purchased a 60-month zero coupon bond with a 4% yield and a $30,000 maturity value for $24,657 (compounded annually). Daniel's marginal tax rate is 37% (i.e. he has $600,000 of income from other sources) before any profits from the business are considered. 1. (1 point) What is the taxable income of the business assuming it operates as a sole proprietorship (choose the answer within 1 or 2 dollars of your exact answer to allow for rounding differences)? a. $159,100 b. $160,086 c. $160,126 d. None of the above 2. (1 point) Calculate the tax liability for the sole proprietorship assuming your answer to part a is $155,000 (i.e. assuming the taxable income of the business is $155,000 ). Choose the answer within 1 or 2 dollars of your exact answer to allow for rounding differences. a. $31,000 b. $31,221 c. $32,550 d. 57,350 3. (1 point) Calculate Daniel's 2021 after-tax cash flows from the business assuming your answer to part B is $35,000 (i.e. assuming the tax liability for the business is $35,000) and Daniel withdraws all after-tax cash flows from the business. a. $156,100 b. $191,100 c. $153,100 d. None of the above