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When a Note Payable Is Exchanged for Property, Goods, or Services

Question 16

Multiple Choice

When a note payable is exchanged for property, goods, or services, the stated interest rate is presumed to be fair unless


A) no interest rate is stated.
B) the stated interest rate is unreasonable.
C) the stated face amount of the note is materially different from the current cash sales price for similar items or from current fair value of the note.
D) any of these answers are correct.

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