On January 1, 2012, Jasmine made a $50,000 interest-free loan to her son, Jason, who used the money to retire a mortgage on his personal residence. Jason's only sources of income were a salary of $75,000 and $1,500 interest income on a savings account. The relevant federal interest rate was 6%. Based on the above information, for 2012: (Points : 5) Jason is not required to recognize the interest income from the bank account. Jasmine must recognize $3,000 interest income from the loan. Jasmine must recognize $1,500 interest income from the loan. Jasmine must recognize $3,045 interest income from the loan. Jasmine recognizes no imputed interest income from the loan.

Damien, not a dealer in real estate, sold real estate with a basis of $250,000 for $500,000 cash, a note for $250,000, and the buyer assumed Damien's mortgage on the property of $125,000. During the year, the purchaser paid Damien $30,000 principal and $72,000 interest on the note and paid $6,000 principal and $18,000 interest on the mortgage he assumed. The contract price for the above transaction is what amount? (Points : 5) $875,000 $750,000 $625,000 $500,000 None of the above