On January 1 of the current year, Seth borrows $140,000, pledging the assets of his business as collateral. He immediately deposits the money in an interest-bearing checking account. Seth already had $40,000 in this account. On May 1, Seth invests $131,600 in a limited real estate partnership. On July 1, he buys a new ski boat for $13,000. On August 1, he makes a $10, 000 capital contribution to his unincorporated business. Seth repays $110, 000 of the loan on November 30 of the current year.

Classify Seth's interest expense for the year.

From	To	Category of Interest	Percentage

Options for the From Column	Options for the To Column	Options for the Category of Interest
- JAN 1 - MAY 1 - AUG 1 - SEP 1 - DEC 1	- APR 30 - JUL 31 - AUG 31 - NOV 30 - DEC 31	- Active Trade or Business - Investment - Passive Actively - Personal - Qualified Residence - Student Loan