Hugh has owned a financial consulting business as a sole proprietor, and he decides to incorporate the business. He transfers real estate (used in the business) in exchange for stock. Shortly before the transfer, Hugh mortgaged the real estate for $90,000 and used $60,000 of the loan proceeds to remodel a bathroom and kitchen in his personal residence (the other $30,000 was used to purchase inventory for the business. i.e., a legitimate business reason). How much of the loan proceeds