Return to question 7 Exercise 10-9 (Algo) Acquisition cost; noninterest-bearing note (LO10-3] 12 points On January 1, 2021, Byner Company purchased a used tractor. Byner paid $4,000 down and signed a noninterest- bearing note requiring $28,000 to be paid December 31, 2023. The fair value of the tractor is not determinable. An interest rate of 12% properly reflects the time value of money for this type of loan agreement. The company's fiscal year-end is December 31. (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. Prepare the journal entry to record the acquisition of the tractor. 2. How much interest expense will the company include in its 2021 and 2022 income statements for this note? 3. What is the amount of the liability the company will report in its 2021 and 2022 balance sheets for this note? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Prepare the journal entry to record the acquisition of the tractor. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollars.) No Transaction General Journal Debit Credit 1 1 25,510 X Tractor Discount on notes payable Cash 6,490 X 4,000 Notes payable 28,000 Req Req 2 and 3 >