On January 1 of the current year, Seth borrows $ 80,000, pledging the assets of his business as collateral. He immediately deposits the money in an interest-bearing checking account. Seth already had $ 35,000 in this account. On April 1, Seth invests $ 74,400 in a limited real estate partnership. On July 1, he buys a new ski boat for $ 12,000. On August 1, he makes a $ 16, 000 capital contribution to his unincorporated business. Seth repays $ 40, 000 of the loan on November 30 of the current year.

1. Classify Seth'sSeth's interest expense for the year.

From Jan 1 Category of interest Percentage lo Apr 1 Jul 1 eg 1 From Jan 1 Category of interest Percentage lo Apr 1 Jul 1 eg 1