On June 1 2003 Brooks Incorporated borrowed $5000000 from the bank. This loan h

On June 1 2003 Brooks Incorporated borrowed $5000000 from the bank. This loan has a term of 10 years and this loan represents the only debt that the company has outstanding. Brooks is required to make a $500000 principal payment on the loan every year for the next 10 years with the first payment due on June 1 2004. An interest payment of 8 percent of the principal balance that was outstanding for the prior 12 month period is also due with each principal payment. How should Brooks classify this loan on its December 31 2003 balance sheet? What would Brooks list as interest expense on its 2003 income statement?