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Accounting Questions?

Accounting Questions?
This answer to these questions are E none of the above for all the questions. I don't understand how that is the answer

40. The Xanadu Company buys machinery for $500,000 and gives a promissory note to pay dated 3 years from the purchase date. Interest at 6% and principal are to be repaid at maturity. The amount that Xanadu should capitalize the asset at (debit machinery) is:
a) $418,000 b) $500,000 c) $530,000 d) $448,000 e) none of the above

41. Using the same data for Xanadu, the net liability should show on the balance sheet at:
a) $418,000 b) $500,000 c) $530,000 d) $448,000 e) none of the above

42. Using the same data for Xanadu, the amortization entry required at the end of the first year would be:
a) no amortization entry is required
b) calculated as one third of the total interest accrued over the 3 years
c) $27,333
d) $25,080
e) none of the above