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NOTES PAYABLE, DEBT RESTRUCTURING, & LEASE - LESSOR.pdf -...

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THEORIES
1.When a note payable is issued for property,goods, or services, the present value of the note ismeasured by
d.any of these.
2.When a note payable is exchanged for property, goods, or services,the stated interest rate is presumed to be fair unless
d.any of these.
3.Discount on Notes Payable is chargedto interest expense
c.using the effective-interest method.
4.In a troubled debt restructuring in which the debt is continued withmodified terms and the carrying amount of the debt is less than the totalfuture cash flows,a.a loss should be recognized by the debtor.b.a gain should be recognized by the debtor.c.a new effective-interest rate must be computed.d.no interest expense or revenue should be recognized in the future.
c.a new effective-interest ratemust be computed.

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Term
Spring
Professor
N/A
Tags
Finance, Depreciation, Debt, Generally Accepted Accounting Principles

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