What information will a lender learn from reviewing a Form 4562 about the business?

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A Form 4562, titled "Depreciation and Amortization," is primarily used for reporting the depreciation on fixed assets and detailing any deductions associated with those assets. When a lender reviews this form, they gain insight into fixed asset purchases made by the business.

This information is essential for a lender as it helps them understand the business's investments in property, plant, and equipment, which indicates the company's capacity for growth, reliability, and operational scale. The details of fixed asset purchases help the lender assess the overall financial stability and asset management of the business, key factors in lending decisions.

The other options either relate to different kinds of financial activity not reported on this specific form or involve categories that aren't relevant to the acquisition of fixed assets, thus providing less insight into the business's capital investments.

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