A company receives property in exchange for a note payable to the seller.No interest rate exists.The interest caused by the transaction will be the difference between what two amounts?

Select one:

a.

The difference between the fair value of the property and the face amount of the note.

b.

The difference between the face value of the note and the book value of the property.

c.

The interest computed using the prime rate on the exchange date.

d.

The interest computed using the prime rate on the maturity date of the note.