Exercise 14-17 Note with unrealistic interest rate; borrower, amortization schedule [LO14-3] 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, 2016. Amber paid for the lathe by issuing a $600,000, 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 12% 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 table below to determine the price of the equipment Table values are based on Cash Flow Interest Principal Amount Present Value Price of equipment