Ridge is a generous individual. During the year, she made interest-free loans to various family members when the Federal interest rate was 3%. What are the Federal tax consequences of the following loans by Ridge? 

a. On June 30, Ridge loaned $12,000 to a cousin, Jim, to buy a used truck. Jim’s only source of income was his wages on various construction jobs during the year. 

b. On August 1, Ridge loaned $8,000 to a niece, Sonja. The loan was meant to enable Sonja to pay her college tuition. Sonja reported $1,200 interest income from CDs that her parents had given her. 

c. On September 1, Ridge loaned $25,000 to a brother, Al, to start a business. Al reported only $220 of dividends and interest for the year. 

d. On September 30, Ridge loaned $150,000 to her mother, Joan, so that Joan could pay the entrance fee at a retirement home. Joan’s only receipts for the year were $9,000 in Social Security benefits and $500 interest income received.