help with E-18. it usues calculations from E-17. thank you!

was unknown. It was determined by comparison with similar transactions that 12% was a reasonable rate of interest Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made luthe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $600.000, unrealistic interest year note that specified 4 interest, payable annually on December 31 of each year. The cash market price of the 2. Prepare 3. What other step(s) would be taken in E 14-17 Note with Required: rate; borrower; amortization schedule LO14-3 1. Prepare the journal entry on January 1, 2021, for Amber Mining and Millings purchase of the lathe. 2. Prepare an amortization schedule for the three-year term of the note. 3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity Refer to the situation described in E 14-17. E 14-18 Note with unrealistic interest rate; lender; amortization schedule LO14-3 Required: 1. Prepare the journal entry on January 1, 2021, for Truax Corporation's sale of the lathe. Assume Truax spent $400,000 to construct the lathe. 2. Prepare an amortization schedule for the three-year term of the note. 3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity for Truax