Pat and Mary Lynn want to loan their son Jim $$400,000$ to buy a house at $0\%$ interest. The AFR is $5\%.$ The market rate

is $6\%.$ Which statement below is true?

The imputed interest is $$20,000,$ nothing is counted as a gift

The imputed interest is $$24,000,$ there will be a $$24,000$ gift to Jim

The imputed interest is $$24,000,$ nothing is counted as a gift

The imputed interest is $$20,000,$ there will be a $$20,000$ gift to Jim