Question Content Area On January 1 , Dave loaned his daughter, Debra, $ 1 0 0 , 0 0 0 to purchase a new car and to pay off college loans There were no other loans outstanding between Dave and Debra The relevant Federal rate on interest was 6 percent The loan was outstanding for the entire year a Debra must recognize $ 6 , 0 9 0 of imputed interest income b Dave must recognize $ 6 , 0 9 0 of imputed interest income regardless of the amount of Debra's investment income c Debra must recognize $ 6 , 0 9 0 of imputed interest income if Dave has at least $ 6 , 0 9 0 of investment income d If Debra has $ 1 5 , 0 0 0 of investment income, Dave must recognize $ 6 , 0 9 0 of imputed interest income

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Question: Question Content Area On January 1 , Dave loaned his daughter, Debra, $ 1 0 0 , 0 0 0 to purchase a new car

Question Content Area

On January

1,

Dave loaned his daughter, Debra, $

100, 000

to purchase a new car and to pay off college loans. There were no other loans outstanding between Dave and Debra. The relevant Federal rate on interest was

6

percent. The loan was outstanding for the entire year.

.

Debra must recognize $

6, 090

of imputed interest income.

.

Dave must recognize $

6, 090

of imputed interest income regardless of the amount of Debra's investment income.

.

Debra must recognize $

6, 090

of imputed interest income if Dave has at least $

6, 090

of investment income.

.

If Debra has $

15, 000

of investment income, Dave must recognize $

6, 090

of imputed interest income.

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