When a note payable is issued for property, goods, or services, the present value of the note may be measured by
A)the fair value of the property, goods, or services.
B)the fair value of the note.
C)using an imputed interest rate to discount all future payments on the note.
D)All of these answer choices are correct.

Question

Quizplus · Accepted Answer

The present value of a note payable issued for property, goods, or services can be measured by any of the methods listed: the fair value of the property, goods, or services, the fair value of the note, or by using an imputed interest rate to discount future payments.

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