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A business owner contributes capital to her business in the form of a long term subordinated loan. Which of the following would be an appropriate

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A business owner contributes capital to her business in the form of a long term subordinated loan. Which of the following would be an appropriate adjustment for a lender to make for the purpose of analysis? Decrease liabilities and increase equity by the amount of the loan. Increase liabilities and decrease equity by the amount of the loan Decrease liabilities and decrease assets by the amount of the loan. Increase assets and increase equity by the amount of the loan

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