On January $1,2024,$ Byner Company purchased a used tractor. Byner paid $$5,000$ down and signed a noninterest$-$bearing note requiring $$42,000$ to be paid on December $31,2026.$ The fair value of the tractor is not determinable. An interest rate of $11\%$ properly reflects the time value of money for this type of loan agreement. The company's fiscal year$-$end is December $31.$

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)$

Required:

Prepare the journal entry to record the acquisition of the tractor.

How much interest expense will the company include in its $2024$ and $2025$ income statements for this note?

What is the amount of the liability the company will report in its $2024$ and $2025$ balance sheets for this note?