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Question: It is December 31, 20x9 and TZ Corporation is making their necessary year-end adjusting entries. Their accountant is unsure how to properly adjust for the following items:
- Interest incurred on an outstanding loan of $21400.29 at 12%
- Interest earned on an outstanding loan of $18114.79 at 10%
Select one:
- A credit to interest revenue of $ 2568.03.
- A debit to interest expense of $ 1811.48
- A credit to interest revenue of $ 1811.48
- A credit to interest expense of $ 2568.03
If the basis in the home is $300,000 and the sale price is $600,000, what is the maximum exclusion they can take on this transaction
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