Question: Problem 4 - 4 9 ( LO . 4 ) Indicate whether the imputed interest rules should apply in the following situations. Assume that all

Problem 4-49(LO.4)
Indicate whether the imputed interest rules should apply in the following situations. Assume that all of the loans were made at the beginning of the tax year unless otherwise indicated.
If an amount is zero, enter "0".
a. Mike loaned his sister $90,000 to buy a new home. Mike did not charge interest on the loan. The Federal rate was 5%. Mike's sister had $900 of investment income for the year.
The reported imputed amount is $ |-?2|
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b. Nico's employer maintains an emergency loan fund for its employees. During the year, Nico's wife was very ill and he incurred unusually large medical expenses. He borrowed $8,500 from his employer's emergency loan fund for six months. The Federal rate was 5.5%. Nico and his wife had no investment income for the year.
The reported imputed amount is $
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Problem 4 - 4 9 ( LO . 4 ) Indicate whether the

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