On 12-31-15, Acme purchased a machine. Acme signed a $800,000 zero-interest bearing note. The note is payable in full on 12-31-17. Assume an acceptable interest rate on similar notes was 4%. On 12-31-15, Acme incurred and paid $12,000 to have the machine installed in its sales office. In this problem, you can ignore depreciation well get to that in chapter 11. Prepare the entries Acme should make related to this note on:

1. 12-31-15.
2. 12-31-16.
3. 12-31-17.