Exercise $4-26($Algorithmic$)($L$.$O$.4)$

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 further that the relevant Federal rate is $5\%$ and that the loans were outstanding for the last six months of the year.

$\backslash$table$[[,\backslash$table$[[$Borrower$\text{'}$s Net$],[$Borrower$]]],[\backslash$table$[[$Amount$]],$Investment Income,Purpose of Loan,$],[$Richard$,$$$6,250,$$$0,$Gift$],[$Woody$,$$$7,500,$$$400,$Purchase stock$],[$Irene$,$$$143,000,$$$0,$Purchase residence$]]$

By how much do each of these loans increase Elizabeth's gross income?

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

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

b$.$ The $$10,000$ exceptior $$ apply to the loan to Woody because the proceeds were used to purchase income producing $.$

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

c$.$ None of the exceptions apply to the loan to Irene because the loan was for $q,$ more than $$100,000.$ Elizabeth's gross income from the loan is $ $$

Exercise $4-26($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 further 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$,$$$6,250,$$$0,$Gift$],[$Woody$,$$$7,500,$$$400,$Purchase stock$],[$Irene$,$$$143,000,$$$0,$Purchase residence$]]$

By how much do each of these loans increase Elizabeth's gross income?

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

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