When a note is issued in exchange for a machine, and interest on the note is not stated:

$2$

points

$01\mathrm{.}03\mathrm{.}12$

Multiple Choice

References

The note and machine are recorded at the face amount of the note or the fair value of the machine whichever is more clearly determinabie

The note should be recorded at its present value, discounted at an appropriate market rate of Interest, if fair values of the note and machine are unavailable

The machine should be depreciated over the term to maturity of the note

The note is recorded at its face amount unless the fair market value of the machine is readily available.