26. (8 Points) Bob made the following interest-free loans on January 1, 2020 which remained outstanding for the entire year. Assume the relevant Federal rate is 4%. Summarize the 2020 federal income tax implications of each loan listed below to Bob.

Borrower Amy Edward Stacy Danny Amount of Loan Borrower's Net Investment Income Purpose of Loan 9,000 1,750 Loan to Bob's sister, Amy, used to buy stock 25,000 800 Loan to Bob's neighbor, Edward, in financial need 75,000 2,500 Loan to Bob's cousin, Stacy, to pay for college 125,000 3,000 Loan to Bob's college friend, Danny, to acquire a business Borrower Amy Edward Stacy Danny Amount of Loan Borrower's Net Investment Income Purpose of Loan 9,000 1,750 Loan to Bob's sister, Amy, used to buy stock 25,000 800 Loan to Bob's neighbor, Edward, in financial need 75,000 2,500 Loan to Bob's cousin, Stacy, to pay for college 125,000 3,000 Loan to Bob's college friend, Danny, to acquire a business