What is done to record properly a transaction involving the issuance of a non-interest-bearing long-term note in exchange for property?

What is done to record properly a transaction involving the issuance of a non-interest-bearing long-term note in exchange for a property?



The entire arrangement must be evaluated and an appropriate interest rate imputed. This is done by (1) determining the fair value of the property, goods, or services exchanged or (2) determining the fair value of the note, whichever is more clearly determinable.


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