Discussion Question 4-19 (LO. 4) In January 2020, Sonja deposited $20,000 in a bank in the Bahamas. She earned $500 interest income. She closed the account in December 2020. a. Is Sonja subject to the FBAR reporting requirement? Sonja is required to file an FBAR form for 2020 because on at least one day during 2020 she had overs in a foreign bank account b. Is the interest income taxable in the United States? of the interest income earned from this account is taxable in the United States mer 4 Assignmenr Exercise 4-24 (Algorithmic) (LO. 4) Elizabeth made the following interest-free loans during the year. Assume that tax avoidance is not a principal purpose of any of the loans. Assume that the relevant Federal rate is 5% and that the loans were outstanding for the last six months of the year. Borrower's Net Investment Income Borrower Amount Purpose of Loan Richard $1,000 $0 Gift Woody $1,200 $350 Purchase stock Irene $161,000 $0 Purchase residence What are the effects of the imputed interest rules on these transactions? Compute Elizabeth's gross income from each loan. If an amount is zero, enter "0". If required, round your final answer to the nearest dollar, a. Richard subject to the imputed interest rules because the $10,000 gift loan exception apply, Elizabeth's gross income from the loan is s b. The $10,000 exception apply to the loan to Woody because the proceeds were used to purchase assets. Although the $100,000 exception does not apply to this foon, the amount of imputed interest is Elizabeth's gross income from the loans to the loan to Irene because the loan was for Elizabeth's gross income from the loan in s Check My Work Previous Next