IMPUTED+INTEREST - between the face amount of the note and...

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IMPUTED INTEREST When a note payable is exchanged for assets or services and there is no stated interest rate or the stated interest rate is unreasonable, GAAP requires that an effective interest rate be imputed. An imputed interest rate is determined by the difference
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Unformatted text preview: between the face amount of the note and the market value of the assets or services. If the market value of the assets or services is not known, then the imputed interest rate is the incremental borrowing rate of the issuer....
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This note was uploaded on 07/08/2011 for the course ACG 4133c taught by Professor Ajinka during the Summer '08 term at University of Florida.

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