Mother makes an interest free demand loan to daughter under the following alternative situations at a time when the applicable federal rate is 5 percent. discuss the tax consequences to mother and daughter:

• (a) Mother loans daughter $10,000 that daughter uses as a part of downpayment on Daughters new residence.
• (b) . . . that daughter invests in a residence that she rents to others.
• (c) . . . that daughter uses as down payment on Daughters new residence at a time when Daughter has $20,000 of net investment income.
• (d) Same as (c) above except that daughter has $1000 of net investment income.