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You are a loan advisor with the federal small-business development agency. You have recently approved a $100,000 loan to a local media company. The company

You are a loan advisor with the federal small-business development agency. You have recently approved a $100,000 loan to a local media company. The company presented a solid business plan and has been performing well to date. The loan bears interest at a market rate of 8% and must be repaid in five years. 



How should this be reflected in the accounting?

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