Question
On January 1January 1 of the current year, ScottScott borrows $ 80 comma 000$80,000, pledging the assets of his business as collateral. He immediately deposits
On
January 1January 1
of the current year,
ScottScott
borrows
$ 80 comma 000$80,000,
pledging the assets of his business as collateral. He immediately deposits the money in an interest-bearing checking account.
ScottScott
already had
$ 20 comma 000$20,000
in this account. On
April 1April 1,
ScottScott
invests
$ 75 comma 000$75,000
in a limited real estate partnership. On
July 1July 1,
he buys a new ski boat for
$ 12 comma 000$12,000.
On
August 1August 1,
he makes a
$ 10 comma 000$10,000
capital contribution to his unincorporated business.
ScottScott
repays
$ 50 comma 000$50,000
of the loan on
November 30November 30
of the current yea
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