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A company borrows money as part of a distribution that it will make to shareholders at the end of the year. Please complete this sentence:

A company borrows money as part of a distribution that it will make to shareholders at the end of the year. Please complete this sentence: The borrowed money will be:

  1. Included in the revenue of the company.
  2. Included in the taxable income of the shareholders.
  3. Impact the statement of cash flow, but NOT the income statement.
  4. Impact the statement of cash flow, and the income statement.

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