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On January 1, Laura loans her employee $150,000 at zero interest. He uses the money to buy a home. Assume the market rate of interest
On January 1, Laura loans her employee $150,000 at zero interest. He uses the money to buy a home. Assume the market rate of interest is 8%. Which of the following statements is/are true? Laura must recognize interest income of $12,000 The employee must recognize compensation income of $12,000 Both a and b are correct. None of these statements are true.
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