(Cash Flow Hedge) On January 2 2014 Parton Company issues a 5-year $10000000 note at LIBOR with interest paid annually. The variable rate is reset at the end of each year. The LIBOR rate for the first year is 5.8%. Parton Company decides it prefers fixed-rate financing and wants to lock in a rate of 6%. As a result Parton enters into an interest rate swap to pay 6% fixed and receive LIBOR based on $10 million. The variable rate is reset to 6.6% on January 2 2015. Instructions (a) Compute the net inte r est expense to be r eported for this note and r elated swap transactions as of December 31 2014. (b) Compute the net inte r est expense to be r eported for this note and r elated swap transactions as of December 31 2015.