Exercise $4-24($Algorithmic$)($LO$.4)$

Elizabeth made the following interest$-$free loans during the year. Assume that tax avoidance is not a principal purpose of any of the loans. Assume that the relevant Federal rate is $5\%$ and that the loans were outstanding for the last six months of the year.

$\backslash$table$[[,$Borrower's Net$],[$Borrower$,$Amount,Investment Income,Purpose of Loan$],[$Richard$,$$$4,500,$$$0,$Gift$],[$Woody$,$$$5,400,$$$350,$Purchase stock$],[$Irene$,$$$131,000,$$$0,$Purchase residence$]]$

What are the effects of the imputed interest rules on these transactions? Compute Elizabeth's gross income from each loan.

If an amount is zero, enter $"0".$ If required, round your final answer to the nearest dollar.

a$.$ Richard $x$ subject to the imputed interest rules because the $$10,000$ gift loan exception $$ apply. Elizabeth's gross income from the loan is $ $$

b$.$ The $$10,000$ exception $x$ apply to the loan to Woody because the proceeds were used to purchase $q,x$ assets. Although the $$100,000$ exception applies $q,$ to this loan, the amount of imputed interest is

$.$ Elizabeth's gross income from the loan is $ $$

c$.$ The $$10,000$ exception applies $x$ to the loan to Irene becauseshe loan was for more than $$100,000.$ Elizabeth's gross income from the loan is $ $$

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