$90\mathrm{.}0\%$ complete

Question

Marge made a $$60,000$ interest$-$free loan to her son, Steve, who used the money to buy an automobile.$$ Steve$$s only sources of income were $$25,000$ from wages and $$250$ of interest on his checking account.$$ The relevant Federal interest rate was $5\%.$ Based on the above information:

A$.$Marge must recognize $$250$ of imputed interest income on the below market loan.

B$.$Marge must recognize $$1,000$ of imputed interest income on the below market loan.

C$.$Marge must recognize $$3,000$ of imputed interest income on the below market loan.

D$.$Marge is not required to impute any interest.