Question: Kait loaned her son, Jake, $ 7 0 4 0 0 for six months. Jake used the $ 7 0 4 0 0 to pay

Kait loaned her son, Jake, $70400 for six months. Jake used the $70400 to pay off college loans. The Federal rate was 5%, and Kait did not charge Jake any interest. Jake had dividend and interest income of $2181 for the tax year.
What is the loan's impact on Kait's gross income?

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