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Orange, Inc. purchased a building, having a fair value of $600,000 on February 1, 2025 by signing a 4-year, zero-interest bearing note with a face

Orange, Inc. purchased a building, having a fair value of $600,000 on February 1, 2025 by signing a 4-year, zero-interest bearing note with a face amount of $437,000. What would Orange record on February 1, 2025? Using the effective interest method, what would be recorded on February 1, 2026 (first interest payment date)?

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