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 $850,000, 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 9% was a reasonable rate of interest. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) 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, 2021, 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 1B Req 2 Req 3 Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field, Round intermediate calculations and final answers to the nearest whole dollar) Req 1A Req 1B Req 2 Req 3 Complete the table below to determine the price of the equipment. (Round f Table values are based on: 3 n = i = 9.0% Cash Flow Amount Present Value Interest $ 34,000 $ 84,553 Principal $ 850,000 638,614 Price of equipment EA $ 723,167 View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 January 01, 2021 Equipment 723.167 Discount on notes payable 126,833 Notes payable 850.000 < Req 1A Req 2 > Prepare an amortization schedule for the three-year term of the note. (Round intermediate calculations an the nearest whole dollar.) Cash Payment Effective Interest Increase in Balance Outstanding Balance $ 723,167 1 $ 34,000 $ 65,085 $ 31,085 754,252 2 34,000 67,883 33,883 788,135 3. 34,000 95,865 61,865 850,000 Total $ 102,000 $ 228,833 $ 126,833 Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity. (If no entry required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and answers to the nearest whole dollar.) View transaction list View journal entry worksheet No Event General Journal 1 1 Interest expense Discount on notes payable Cash Debit Credit 65.085 31,085 34,000 2 2 Interest expense 67,883 Discount on notes payable 33,883 Cash 34.000 3 3 Interest expense 95.865 Discount on notes payable 61,865 Cash 34,000 4 4 Notes payable Cash 850.000 850.000