On January 1, 2022, Debbie loans $4,000,000 to her son Mike in return for a non-interest bearing, demand loan. The loan remains outstanding on December 31, 2022. Assuming the applicable federal rate for all of 2020 is 3%, which of the following is true? (Compute amounts using simple interest, payable annually)

a. Mike has interest income of $120,000

b. Debbie has interest income of $120,000 and has made a deemed gift to Mike of $120,000

c. Debbie has interest expense of $120,000 and has made a deemed gift to Mike of $120,000

d. Mike will have compensation income of $120,000

e. The loan meets the de minims exception and is not treated as a below market loan