Elizabeth makes the following interest-free loans during the year. The relevant Federal interest rate is 5%, and none of the loans are motivated by tax avoidance. All of the loans were outstanding for the last six months of the tax year. Identify the Federal income tax effects of these loans by computing Elizabeth's gross income from each loan. Borrower's Net Investment Income Borrower Amount Purpose of Loan Gift Richard $7,750 $0 Woody $9,300 $450 Purchase stock Irene $116,000 $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 is not gross income from the loan is s b. The $10,000 exception does not apply to the loan to Woody because the proceeds were used to purchase income producing assets. Although the $100,000 exception applies Elizabeth's gross income from the loan is s to the loan to Irene because the loan was for more than $100,000 c. None of the exceptions apply gross income from the loan is s Feedback Check o subject to the imputed interest rules because the $10,000 gift loan exception does apply. Elizabeth's to this loan, the amount of imputed interest is . Elizabeth's