On March 14, 2016, Big A Corp purchased land for $100,000. Big A completed construction of a warehouse on the land during 2016 at a cost of $1,000,000, and immediately began depreciating it over 25 years on a straight-line basis to a $100,000 salvage value. On April 18, 2022, Big A sold the land and warehouse to WalCo. In exchange for the warehouse and land, WalCo gave Big A a used tractor trailer having a market value of $85,000, $250,000 in cash, and a $650,000 note payable in 6 months bearing an interest rate of 6.0%.

Required (you may submit a pdf):

You must show your work to receive any credit!

A. (3 points) Prepare in good form the Big A Corps journal entry record the sale of the land and warehouse.

B. (1 point) Prepare in good form Walcos journal entry to record payment of the note payable at maturity.