Becker Motors purchased a custom-made metal press for use in repairing wrecked cars. The press was installed on January 2, 2016. The press had a market value of $320,000. Becker agreed to pay for the press in three equal installments beginning December 31, 2016. At the time, Hornet's incremental borrowing rate was 8%.

Required: Prepare the first two years of the amortization table for the note payable. Prepare the journal entries to record (1) the purchase of the machine, (2) the first annual payment, and (3) the 2 nd annual payment. Round to the nearest dollar.