On January 1, Snipes Construction paid for earth-moving equipment by issuing a $400,000, 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%.Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)At what amount should Snipes record the equipment and the note?What journal entry should it record for the transaction?