Marge made a $60,000 interest-free loan to her son, Steve, who used the money to buy an automobile. Steves only sources of income were $25,000 from wages and $250 of interest on his checking account. The relevant Federal interest rate was 5%. Based on the above information:

A) Marge must recognize $250 of imputed interest income on the below market loan.

B) Marge must recognize $1,000 of imputed interest income on the below market loan.

C) Marge must recognize $3,000 of imputed interest income on the below market loan.

D) Marge is not required to impute any interest.