Jasmine made a $$60,000$ interest$-$free loan to her son, Farhad, who used the money to start a new business. Farhad's only sources of income were $$25,000$ from the business and $$490$ of interest on his checking account. The relevant Federal interest rate was $5\%.$ Based on this information:

a$.$ Farhad's gross income must be increased by the $$3,000(0\mathrm{.}05$ $$60,000)$ imputed interest income on the below$-$market loan.

b$.$ Jasmine does not recognize any imputed interest income and Farhad does not recognize any imputed interest expense.

c$.$ Jasmine must recognize $$3,000(0\mathrm{.}05$ $$60,000)$ of imputed interest income on the below$-$market loan.

d$.$ Farhad's business net profit will be reduced by $$3,000(0\mathrm{.}05$ $$60,000)$ of interest expense.