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Bob owns a burger chain. One of his employees, Steve, wants to buy a house and asks Bob to lend him money for the down
Bob owns a burger chain. One of his employees, Steve, wants to buy a house and asks Bob to lend him money for the down payment. Bob lends Steve $10,000. Because Steve is a star employee and has been working there for five years, Bob only charges 1% annual interest on the loan and asks Steve to repay the amount in five years. Assuming the federal interest rate on a similar loan is 5%. How much does Steve have to include in gross income related to this transaction? For credit, you must enter your answer in WHOLE DOLLARs. Do NOT enter the dollar sign in your answer - only enter the numbers (e.g., X,XXX). For example, one thousand dollars should be entered as 1,000. Please enter zero (i.e., O) if all of the income from the event described is excluded from gross income
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