How do I create the journal entry for the following: Purchased a building $600,000. The fair market value of the building at the time of acquisition was $750,000. Only $100,000 in cash was paid at the time of legal title transfer and the corporate controller signed a note for the balance. The interest on the rate o n the loan is 8%. This loan requires monthly payments of $10,000. Useful life on the building is 40 years. Is this right?

Debit Building $600,000; Credit Cash $100,000 and Note Payable $500,000

Debit Depreciation Expense $15,000; Credit Accum Depreciation (Building) $15,000

Adjusting journal entry for the quarter = Debit Interest Expense $10,000; Credit Interest Payable $10,000

Just wondering how the fair market value would be relevant in the initial journal entry; I know there would be a gain if the building was sold but that hasn't happened yet. Please advise.