The income statement method. Kellyco wants to expand its production space. They need to acquire approximately $25,000,000. The company wants to issue a bond to obtain the funds needed. Their Investment Banker has recommended that the bonds should have an 8% stated interest rate and be issue for a 20 year term. Kellyco issued $25,000,000 worth of bonds on 1-1-16. Interest is paid annually and is amortized using the straight line method. Assume the bonds sell at 95, make the required entries on 1/1/16 and 12/31/16 Assume the bonds sell at 163, make the required entries on 1/1/16 and 12/31/16 Meganco purchased a new cruncher on 1/1/16 for a total installed cost of $1, 250,000. It has a 15 year physical life and can be sold for $150,000 at that time. The Use Permit on the land site where the cruncher is located, will expire in 8 years at which time the cruncher will have to be dismantled and sold for $300,000. Assume that Meganco uses 200% double declining balance depreciation, make the required adjusting entries on 12/31/16 and 12/31/17