1 how to solve the question (c)?

Novak Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020, to expand its production capacity to meet customers' demand for its product. Novak issues a(n) $2,320,000, 5-year, zero-interest-bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 12%. The company will pay off the note in five $464,000 installments due at the end of each year over the life of the note. (a) Your answer is correct. Prepare the journal entry at the date of purchase. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Equipment 1672618 Discount on Notes Payable 647382 Notes Payable 2320000Prepare the journal entry at the end of the first year to record the payment and interest, assuming that the company employs the effective-interest method. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Interest Expense 200714 Notes Payable 464000 Discount on Notes Payable 200714 Cash 464000( c) Your answer is partially correct. Prepare the journal entry at the end of the second year to record the payment and interest. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Interest Expense 120949 Notes Payable 464000 Discount on Notes Payable 120949 Cash 464000Indigo Corporation wishes to exchange a machine used in its operations. Indigo has received the following offers from other companies in the industry. 1. Sweet Company offered to exchange a similar machine plus $24,840. (The exchange has commercial substance for both parties.) 2. Pharoah Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Novak Company offered to exchange a similar machine, but wanted $3,240 in addition to Indigo's machine. (The exchange has commercial substance for both parties.) In addition, Indigo contacted Splish Corporation, a dealer in machines. To obtain a new machine, Indigo must pay $100,440 in addition to trading in its old machine. Indigo Sweet Pharoah Novak Splish Machine cost $172,800 $129,600 $164,160 $172,800 $140,400 Accumulated depreciation 64,800 48,600 76,680 81,000 -0- Fair value 99,360 74,520 99,360 102,600 199,800 For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)No. Account Titles and Explanation Debit Credit 1. Indigo Corporation Sweet Company