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Stock in Ford Corporation is held equally by Emily, Louise, and John. Ford seeks additional capital to buy a valuable tract of land that will
Stock in Ford Corporation is held equally by Emily, Louise, and John. Ford seeks additional capital to buy a valuable tract of land that will cost $ Emily, Louise, and John propose to loan Ford $ each, taking from Ford a $year note with interest payable annually at five points above the prime rate. Ford Corporation has current taxable income of $ How are the payments on the notes treated for tax purposes? Hint you do NOT need to know the prime rate to solve
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