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On July 1, 2020, Sam loaned his son $150,000 to purchase a new house. The loan is for ten years with no interest. The son
On July 1, 2020, Sam loaned his son $150,000 to purchase a new house. The loan is for ten years with no interest. The son has no investment income. If the applicable federal rate (AFR) is 5%, what amount of imputed interest will Sam report in gross income in 2020?
0
7,500
3,750
1,250
None of the above
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