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Maria, is a CPA who works in the tax area. A client tells you that she took out a loan of $25,000 during tax year

Maria, is a CPA who works in the tax area. A client tells you that she took out a loan of $25,000 during tax year 2022 and that the bank officer mentioned that the amount of the loan is taxable. However, the client mentions that he understands that the product of a loan is exempt from taxation. What is the tax basis with which Maria is going to determine if the amount of the loan is taxable or exempt?

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