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 $1,2021.$ Amber paid for the lathe by issuing a $$700,000,$ three$-$year note that specified $4\%$ interest, payable annually on December $31$ of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that $11\%$ was a reasonable rate of interest. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

$1-$a$.$ Complete the below table to prepare the company's journal entry.

$1-$b$.$ Prepare the journal entry on January $1,2021,$ for Truax Corporation$$s sale of the lathe. Assume Truax spent $$500,000$ to construct 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 for Truax.