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In: AccountingAmber Mining and Milling, Inc., contracted with TruaxCorporation to have constructed a custom-made lathe. The...Amber Mining and Milling, Inc., contracted with TruaxCorporation to have constructed a custom-made lathe. The machinewas completed and ready for use on January 1, 2018. Amber paid forthe lathe by issuing a $750,000, three-year note that specified 3%interest, payable annually on December 31 of each year. The cashmarket price of the lathe was unknown. It was determined bycomparison with similar transactions that 12% was a reasonable rateof interest.