Falk company purchased a new Machine with a list price of $50,000. Falk paid $5000 down and financed the balance over 4 years with monthly payments of $956.77 each. The stated interest rate was 1% annual. The low interest deal was option 1 for purchase, option 2 was a $4000 rebate. Record the purchase of the machine and calculate the payment based on the stated, legal rate and prepare two period amortization table for the stated rate. Calculate the effective interest rate and two period amortization table at the effective rate. Record the first payment on the loan.