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Merced police discovered the victim inside the bedroom at an assisted living home on Main Street.
Neighbors say the victim owns the business and has been involved in a dispute over wages with a former employee.
Monday night a 9-1-1 call came into police about the crime before they were able to track down the murder scene.
Police caught up with the suspect Evan James Lovett after he crashed the victim's car and then hid in nearby bushes.
Investigators are not releasing a motive.
Police do not believe any assisted living residents witnessed the crime.
The name of the victim has not been released.
