Journal entry to record the cost of acquisition for the asset acquired in exchange of note payable. Given information: Amount of note issued to acquire custom-made refrigerator is $1,500,000. Time period is 10 years. Market interest rate is 5%. Fair value of asset and note is not determinable.

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Chapter 11, Problem 11.4BE

To determine

To prepare: Journal entry to record the cost of acquisition for the asset acquired in exchange of note payable.

Given information:

Amount of note issued to acquire custom-made refrigerator is $1,500,000.

Time period is 10 years.

Market interest rate is 5%.

Fair value of asset and note is not determinable.

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