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 Gift Richard $4,250 $0 Woody $450 $5,100 $153,500 Purchase stock Purchase residence $0 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". 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 bpply. Elizabeth's gross income from the loan is s . 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 Elizabeth's gross income from the loan is $ Elizabeth's gross income from the loan is $ to the loan to Irene because the loan was for Soto Settings to activate Win