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5. Logan made a $90,000 interest-free loan to his son, Christian, who used the money to retire a mortgage on his personal residence and to buy a certificate of deposit. Logan's only income for the year is his salary of $35,000 and $1,400 interest income on the certificate of deposit. Assume the relevant Federal interest rate is 8% compounded semiannually. The loan is outstanding for the entire year. a. Based on this information, what is the effect of the loan on Logan's gross income for theyear? b. The facts are the same as above except that you discovered that Logan had made an additional loan of $15,000 to Christian in the previous year. Christian used the funds to pay his child's private school tuition. What are the effects of the loans on Logan's gross income? 5. Logan made a $90,000 interest-free loan to his son, Christian, who used the money to retire a mortgage on his personal residence and to buy a certificate of deposit. Logan's only income for the year is his salary of $35,000 and $1,400 interest income on the certificate of deposit. Assume the relevant Federal interest rate is 8% compounded semiannually. The loan is outstanding for the entire year. a. Based on this information, what is the effect of the loan on Logan's gross income for theyear? b. The facts are the same as above except that you discovered that Logan had made an additional loan of $15,000 to Christian in the previous year. Christian used the funds to pay his child's private school tuition. What are the effects of the loans on Logan's gross income