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Income Tax 22) On January 1, the Reyes loaned their daughter, Rachael, $25,000 so that she could open up her own business. The terms of

Income Tax

22)

On January 1, the Reyes loaned their daughter,

Rachael, $25,000 so that she could open up her own

business. The terms of the loan require Rachael to

pay her parents back the $25,000 in three years. No

interest is being charged on the loan. The AFR for

short, medium, and long-

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