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. Problem 1 Question 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)? $159,100$160,086$160,126 None of the above 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. Problem 1 Question 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)? $159,100$160,086$160,126 None of the above