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	Amount		Borrower's Net Investment Income			Purpose of Loan
Richard	$2,500		$0			Gift
Woody	$3,000		$450			Purchase stock
Irene	$144,500		$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 $fill in the blank 3.

b. The $10,000 exception apply to the loan to Woody because the proceeds were used to purchase assets. Although the $100,000 exception to this loan, the amount of imputed interest is $fill in the blank 7. Elizabeth's gross income from the loan is $fill in the blank 8.

c. to the loan to Irene because the loan was for . Elizabeth's gross income from the loan is $fill in the blank 11.