An asset is acquired using a noninterest-bearing note payable for $100,000 due in two years. Management records the purchase with a debit to the asset for $100,000 and a credit to notes payable for $100,000. Which of the following statements is correct?

• Management has properly recorded the transaction.
• Management has not considered the present value of the note in recording the asset.
• Management should not record the asset until the note has been paid.
• Management should record the note for more than $100,000 to account for the underlying interest.