Exercise 4-6 (Algorithmic) (LO. 10) 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. Borrower's Other Net Borrower Amount Investment Income Purpose of Loan Richard $5,500 $0 Gift Woody $6,600 $550 Stock purchase $168,500 $0 Purchase principal residence Irene What are the effects of the imputed interest rules on these transactions? If an amount is zero, enter "O". If required, round your final answer to the nearest dollar. a. Richard is not subject to the imputed interest rules because the $10,000 exception does income from the loan is $ apply. Elizabeth's gross b. The $10,000 exception does not apply to the loan to Woody because the proceeds were used to purchase income producing assets. Because the $1,000 exception applies to this loan, no interest is imputed. Elizabeth's 0. 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 . Elizabeth's gross income from the loan is $