on december 31 2017 chauvin inc purchased land and building from a developer for 22 million/

a. How much should Chauvin report as a liability for the loan on its balance sheet on December 31, 2017 through 2021? What would the interest expense be each year?
b. Why isn’t it appropriate to record the liability initially at $16 million? What is the impact on the financial statements of recording the liability at this amount?