Question: When Keith created a new corporation as the sole shareholder, he was advised by his accountant to treat 50 percent of the amount invested as

When Keith created a new corporation as the sole shareholder, he was advised by his accountant to treat 50 percent of the amount invested as a loan and 50 percent as a purchase of stock. What are the advantages and disadvantages of this structure as compared with treating the entire investment as a purchase of stock?

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