On January $1,$ Snipes Construction paid for earth$-$moving equipment by issuing a $$490,000,3-$year note that specified $3\%$ interest to be paid on December $31$ of each year. The equipment$$s retail cash price was unknown, but it was determined that a reasonable interest rate was $6\%.$

At what amount should Snipes record the equipment and the note?

What journal entry should it record for the transaction?