Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine w

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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, 2019. Amber paid for
the lathe by issuing a $500,000, three-year note that specified 5%
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 8% 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.)

Required:
1-a. Complete the table below to determine the
price of the equipment.
1-b. Prepare the journal entry on January 1, 2019,
for Amber Mining and Milling’s purchase of the lathe.
2. Prepare an amortization schedule for the
three-year term of the note.
Outstanding balance
3. Prepare the journal entries to record (a)
interest for each of the three years and (b) payment of the note at
maturity.
Please give step by step detail and help me understand
how to do this! Thank you