Question: Jody borrowed 2 5 0 0 0 from her controlled corporation for six months. She used the funds to pay her daughters college tuition. The

Jody borrowed 25000 from her controlled corporation for six months. She used the funds to pay her daughters college tuition. The corporation charged Jody 4% interest. The federal rate was 5%. Jody had 3500 of investment income for the year.

How much interest must be imputed? 

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