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 $500,000, three-year note that specified 4% 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.1.Complete the table below to determine the price of the equipment.2. Prepare the journal entry on January 1, 2016, for Amber Mining and Milling’s purchase of the lathe.3. Prepare an amortization schedule for the three-year term of the note.4. Prepare the journal entries to record (a) interest for each of the three years (b) payment of the note at maturity.Prepare the journal entry on January 1, 2016, for Amber Mining and Milling’s purchase of the lathe.