On January $1,2024,$ Byner Company purchased a used tractor. Byner paid $$5,000$ down and signed a noninterest$-$bearing note requiring $$32,000$ to be paid on December $31,2026.$ The fair value of the tractor is not determinable. An interest rate of $10\%$ 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:

$1.$ Prepare the journal entry to record the acquisition of the tractor.

$2.$ How much interest expense will the company include in its $2024$ and $2025$ income statements for this note?

$3.$ What is the amount of the liability the company will report in its $2024$ and $2025$ balance sheets for this note?

Required $1$:

tractor $?$

discount on notes payable $?$

cash $5,000$

notes payable $32,000$

Req $2$:

Interest expense $2024?2025?$

Liability amount $2024?2025?$