Please answer #2 only I already answerd Required 1.

Please answer #2 only I already answerd the previoues question.

mace 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 $700,000, three-year note that specified 6% 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 10% 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.) r t oaablumboer paid for lalom and PVAD oT si) lisebe r Required 1-a. Complete the table below to determine the price of the equipment. Table values are based on: 10.0% Cash Flow Interest Principal Amount Present Value 104,448 525,917 630,365 42,000 $ $ 700,000 Price of machinery 1-b. Prepare the journal entry on January 1, 2016, for Amber Mining and Milling's purchase of the lathe. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list view general journal Journal Entry Worksheet Record the Amber Mining and Milling's purchase of the lathe Date General Journal Debit Credit January 01, 2016 Equipment 630,365 69,635 Discount on notes payable Notes payable 700,000