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)All of these answer choices are correct.

Question

Quizplus · Accepted Answer

All of these conditions (A, B, and C) indicate situations where the stated interest rate might not be fair, thus requiring further evaluation.

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