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An asset is acquired using a noninterest-bearing note payable for $225,000 due in three years. Which of the following statements most likely is correct?

Multiple Choice

• The fair value of the asset is less than $225,000.

• All of the other answer choices are correct.

• The total amount paid for the asset will be less than $225,000.

• No interest expense will be reported over the three-year note.