An example of a transaction that may be indicative of the existence of related parties is:
A)borrowing or lending at a rate of interest that equals the current market rate.
B)selling real estate at a price that is comparable to its appraised value.
C)making large loans with specified terms as to when or how the funds will be repaid.
D)exchanging property for similar property in a non-monetary transaction.

Question

Quizplus · Accepted Answer

Exchanging property for similar property in a non-monetary transaction may be indicative of related parties because the parties involved may have an interest in transferring assets without exchanging cash, which may not reflect arm's length pricing. This is especially true if the property being exchanged is of comparable value or nature, suggesting a prior agreement or relationship between the parties.

An Example of a Transaction That May Be Indicative of the Existence