Answer:
the options are missing, so I looked for them.
the options are:
- The note is recorded at its face amount unless the fair value of the building is readily available.
- The building should be depreciated over the note’s term to maturity.
- Both the note and building are recorded at the fair value of the note or the fair value of the building, whichever is more clearly determinable.
- If fair values of the note and building are unavailable, the note should be recorded at its face amount.
The correct answer is:
4. If fair values of the note and building are unavailable, the note should be recorded at its face amount.
