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 Borrower Amount Investment Income Purpose of Loan Richard $5,000 $800 Gift Woody $8,000 $600 Purchase stock $105,000 $0 Purchase residence Irene 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". a. Richard is not subject to the imputed interest rules because the $10,000 gift loan exception does apply. Elizabeth's gross income from the loan is $ b. The $10,000 exception apply to the loan to Woody because the proceeds were used to purchase income producing assets. Although the $100,0000 exception applies to this loan, the amount of imputed interest is . Elizabeth's gross income from the loan is $ C. None of the exceptions apply to the loan to Irene because the loan was for more than $100,000 V Elizabeth's gross income from the loan is $