Luke Owns a Farm near Marshalltown,Iowa,with Stands of Trees Serving

question 2

Multiple Choice

Luke owns a farm near Marshalltown,Iowa,with stands of trees serving as windbreaks.Luke grows corn on the property.When Luke sells the farm to Nina,if the contract does not specify otherwise,the sale includes

• A)neither the crops nor the trees.
• B)the crops and the trees.
• C)the crops only.
• D)the trees only.

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Definitions:

Promissory Note

A financial document in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.

Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered or used but not yet paid for.

Note Duration

Note duration refers to the length of time until a financial note's principal and any accumulated interest are due to be repaid.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, typically noted on an annual basis.