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Wally is employed as an executive with Pay More incorporated To entice Wally to work for Play More the corporation loaned him $43.000 at the beginning of the year at a simple interest rate of 1 percent. Wally would have paid interest of $5160 this year if the interest rate on the loan had been set at the prevailing federal interest rate. Required: a. Wally used the funds as a down payment on a speedboat and repaid the $43.000 loan ( ) clading 5430 of interest) at year-end. a-1. Does this loan result in any income to either party? a-2. Indicate the amount below. b. Assume instead that Pay More forgave the loan and interest on December 31 What amount of gross income does Wally recognize this year? Complete this question by entering your answers in the tabs bolow. Todicate the iimount below