Loki loans $12,000 to his brother, Thor, and does not charge him interest. Which of the following statements describes the income tax consequnces of this transaction?

Group of answer choices

b. Interest woud not be imputed because loans of $100,000 or less are always exempt from both income tax and gift tax consequences.

Interest would not be imputed if Thor's earned income is less than $1,000.

a. Interest would not be imputed because the loan is less than the amount of the gift tax annual exclusion.

c. Interest would be imputed if Thor has unearned income of $1,200.