6. When a partner invests noncash assets in a partnership, the assets should be recorded at their fair value. 7. The major advantages resulting from the use of bonds are that interest must be paid and principal repaid. 8. Short-Term Notes Payable may be secured by a mortgage that pledges title to specific assets as security for a loan 9. Under the equity method, the investor records dividends received by crediting Stock Investments. 10. The first step in the liquidation of a partnership is to sell noncash assets and recognize a gain or loss on realization.