Amber Mining and Milling, Incorporated, contracted with Truax Corporation to have constructed a custom$-$made lathe.

The machine was completed and ready for use on January $1,2024.$

Amber paid for the lathe by issuing a $$500,000,$ three$-$year note that specified $6\%$ 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 $10\%$ was a reasonable rate of interest.

Required:

$1-$b$.$ Prepare the journal entry on January $1,2024,$ for Amber Mining and Milling's purchase of the lathe.

Prepare an amortization schedule for the three$-$year term of the note.

Prepare the journal entries to record $($a$)$ interest for each of the three years and $($b$)$ payment of the note at maturity.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$