An asset is acquired using a noninterest-bearing note payable for $225,000 due in three years. Which of the following statements most likely is correct?
1) The asset will be recorded at its fair value on the acquisition date.
2) The asset will be recorded at its cost on the acquisition date.
3) The asset will be recorded at its book value on the acquisition date.
4) The asset will be recorded at its market value on the acquisition date.