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 $5,250 $0 Gift Woody Irene $6,300 $189,500 $450 $0 Stock purchase Purchase principal 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 $ b. The $10,000 exception $100,000 exception apply to the loan to Woody because the proceeds were used to purchase to this loan, the amount of imputed interest is $ assets. Although the . Elizabeth's gross income from the loan is $ C. to the loan to Irene because the loan was for Elizabeth's gross income from the loan is $