Anthony loans his daughter Belinda $2,000,000. Belinda signs a

promissory note agreeing to repay the $2,000,000 within ten days of a

written demand by Anthony. The note does not require the payment of

interest.

a. What are the gift tax consequences? Does it matter how Belinda

uses the $2,000,000?

b. What if Anthony charges her interest at 2 percent above what he

could earn on a certificate of deposit?