When a note payable is exchanged for property, goods, or services, the stated interest rate is presumed to be appropriate unless
A) No interest rate is stated
B) The stated interest rate is inappropriate.
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 answers are correct

Question

Quizplus · Accepted Answer

The stated interest rate on a note payable is presumed to be appropriate unless any of the conditions listed (A, B, C) are met. If no interest rate is stated, the stated interest rate is deemed inappropriate, or the face amount of the note is materially different from the current cash sales price or fair value, the presumption of appropriateness does not hold.

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