Question: On January 1 , 2 0 2 4 , Evanston Corporation borrowed $ 7 million from a local bank to construct a new building over

On January 1,2024, Evanston Corporation borrowed $7 million from a local bank to construct a new building over the next 3 years. The loan will be paid back in three equal installments of $2,570,460 on December 31 of each year. The payments include interest at a rate of 5%.
Required:
1. How will the loan affect the financial statements on January 1,2026?

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