Unformatted text preview: rate. Generally, it is assumed that in any arm's length transaction, the interest rate stated on a note signed in exchange for goods and services is a fair rate. If an interest rate is not stated, the exchange value is based on the value of the goods or services received. The difference between the exchange value and the face amount of the note signed is considered interest....
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- Spring '08
- Interest, 10%, Generally Accepted Accounting Principles, Promissory note, $10,000, exchange value