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Amber Mining and Milling, Incorporated, contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2024. Amber paid for the lathe by issuing a $500,000, three-year note that specified 6% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 10% was a reasonable rate of interest. Required: 1-a. Complete the table below to determine the price of the equipment. 1-b. Prepare the journal entry on January 1, 2024, for Amber Mining and Millings purchase of the lathe. 2. Prepare an amortization schedule for the three-year term of the note. 3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

1a.

1b.

2. fill in the blanks

3. Prepare all 4 journal entries

Complete this question by entering your answe Complete the table below to determine the price of the Note: Round final answers to the nearest whole dollar. \begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ General Journal } & Debit & Credit \\ \hline Equipment & 450,264 & \\ \hline iscount on notes payable & 49,736 & \\ \hline Notes payable & Req 2 > \\ \hline

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