a. 4. When the stated rate is higher than the effective interest rate, the note is exchanged at a discount. b. the excess is amortized by debiting Notes Receivable and crediting the amount of interest income that is recognized. the note's fair value is more than its face value. d. the note's fair value is equal to its future value. C. a. 5. "Net realizable value of an inventory item is defined as the estimated selling price of the item. b. the estimated selling price less estimated costs to sell and complete the item. the estimated selling price plus estimated costs to sell and complete the item. d. the original cost price less estimated costs to sell and complete the item. C. 6. If prices were rising, which inventory method would report would give the highest reporting value? a. FIFO. b. moving average. specific identification d. weighted-average. C