As of January 1, the DeLuze LLC owes the First Belton Bank $350,000 which is due on December 31. Since DeLuze, LLC seems unable to repay the note, the bank agreed that DeLuze can "settle" this balance by agreeing to make four, annual installments on each of the next four years, provided that it adds a "due on demand" clause to the note. Specifically, the lender will "do its best" not to call the note "provided that no adverse significant shift in operations occurs." However, First Belton Bank has the sole discretion to ascertain if these adverse conditions arose, and then to call the note due immediately. How should DeLuze account for this above situation?