If a Debt Instrument with No Ready Market Is Exchanged

question 20

Multiple Choice

If a debt instrument with no ready market is exchanged for property whose fair value is currently indeterminable.

• A) The board of directors of the entity receiving the property should estimate a value for the property that will serve as a basis for the transaction
• B) The present value of the debt instrument must be approximated using an imputed interest rate
• C) The directors of both entities involved in the transaction should negotiate a value to be assigned to the property
• D) It should not be recorded on the books of either party until the fair value of the property becomes evident

---

Definitions:

Changes Constantly

A characteristic of something that is continually undergoing modifications or alterations.

Household Income

The total amount of money earned by the members of a household, encompassing all sources of income.

Individual Journal Notes

Personal records or annotations made by individuals in journals for various purposes, including reflection, study, or record-keeping.

SPSS Syntax

The specific command language used in the SPSS (Statistical Package for the Social Sciences) software to perform statistical analysis and manipulate data.