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Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018 Amber paid for the lathe by issuing a $500,000, three-year note that specified 5% 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 8% was a reasonable rate of interest. F /of 1 of 1 FVAo $1. PVA of 1 F AD of 1 and PVAD of S) (Use appropriate factorfs) from the tables provided.) Required: 1-a. Complete the table below to determine the price of the equipment. 1-b. Prepare the journal entry on January 1, 2018, for Amber Mining and Milling's 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. Complete this question by entering your answers in the tabs below Req 1A Req 18Req 2 Complete the table below to determine the price of the equipment. (Round final answers to the nearest whole dollar.) able values are based on: Req 3 80% h Flow Amount Present Val $ 25,000 S 500,000 Interest Principal Price of equipment C Reg tA Req 1B >

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