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Henry takes out a home-equity loan for $50,000. He deposits the loan proceeds into an account used by his sole proprietorship, a business in which
Henry takes out a home-equity loan for $50,000. He deposits the loan proceeds into an account used by his sole proprietorship, a business in which he actively participates. The money is immediately spent on new equipment for the business. Henry should elect to treat the $50,000 loan as: A. Small business loan B. Not secured by a qualified residence C. Short term loan D. Working capital loan
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
