Question: John Hansen owns Hansen Sporting Goods, a retail store organized as a sole proprietorship. He also owns a home that he purchased for $250,000 but

John Hansen owns Hansen Sporting Goods, a retail store organized as a sole proprietorship. He also owns a home that he purchased for $250,000 but that is worth $300,000 today. (Hansen has a $140,000 mortgage against this house.) Explain how this house and mortgage should be classified in the financial statements of Hansen Sporting Goods

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