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Question - Globaltel Corporation puchased a plot of land for $100,000 in cash and a $600,000 face amount zero-interest bearing note payable to the seller. On the date of the transaction, the present value of the note at the market rate of interest for similar debt was $495,900, which equals its fair value. A recent appraisal of the land valued it at $625,000.
Required - Show Globaltel's journal entry to record its purchase of the land.
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