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Nefertiti Corporation purchased an asset from Abdi-Heba Corporation on January 1, 2019. Abdi-Heba accepted a 3-year, non-interest-bearing note of $20,000 due December 31, 2021, in
Nefertiti Corporation purchased an asset from Abdi-Heba Corporation on January 1, 2019. Abdi-Heba accepted a 3-year, non-interest-bearing note of $20,000 due December 31, 2021, in exchange for the asset. Neither the fair value of the asset nor that of the note is available. Nefertiti's incremental borrowing rate is 10%. Journal entries to record purchase of the asset would include
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