<span>A. income statement debit column</span>
Answer:
interest payable 66,000
note payable 384,000
Land 325,000
Gain on disposal 125,000
Explanation:
600,000 x 11% = 66,000 interest payable
the land is being used to settle the note along with the accrued interest at the time:
the accounting of Transit developments record the land at cost: 325,000
as the market valuye is 450,000 so a gain for 125,000 will be recognize.
450,000 market value - 66,000 interest payable: 384,000 payment on the note principal
the entry will write-off the interest payable, decrease the note by that amount and recognize the land gain on disposal
Answer: <u><em>Depreciation for the first year = 17825</em></u>
Explanation:
Given:
Machine purchased for $125,000
Salvage value of $10,000
Output = 100,000
First year of operation, Output = 15500
First, we'll evaluate depreciation per unit over the entire life of the machine:
i.e. 
Depreciation per unit = 
<em>Depreciation per unit = 1.15</em>
Now, we'll compute the depreciation for the first year:
Depreciation for the first year = Depreciation per unit × Output (first year)
Depreciation for the first year = 1.15 × 15500
<u><em>Depreciation for the first year = 17825</em></u>