Acc 407 - Federal Income Tax - Final Exam Name 3. Kris Kringle operates a small lending operation in North Pole Maine. During the year, he made a $4,000 loan to his best friend, Freeze Miser, which had a stated interest rate, specified repayment terms and was documented by a written loan agreement. Freeze Miser had borrowed under similar terms from other North Pole lenders. After paying back $750 in principle, Miser defaulted on the note. How would Kringle report this on his tax return? a. a non-deductible gift of $3,250 b. a short-term capital loss of $3250 c. a long-term capital loss of $3.250 d. an ordinary loss of $3,250 4. Assume that the loan made by Kringle in