Problem 4 a. On January 1, 2019, Marge made a $75,000 interest-free loan to her son, Steve, who used the money to start a new business. Marge's sources of income in 2019 were salary of $100,000 and interest income of $4,000 from bonds she owns. Steve's only sources of income in 2019 were $50,000 from the business and $500 of interest on his checking account. The relevant Federal interest rate was 3%. The full amount of the loan was outstanding at the end of the year. Describe the effect of the loan on the 2019 taxable income of both the borrower and lender. Effect on Marge's 2019 taxable income:. Effect on Steve's 2019 taxable income:.. b. How would your answer to part a change if the amount of the loan is $150,000 instead of $75,000? Effect on Marge's 2019 taxable income: Effect on Steve's 2019 taxable income: w Problem 4 a. On January 1, 2019, Marge made a $75,000 interest-free loan to her son, Steve, who used the money to start a new business. Marge's sources of income in 2019 were salary of $100,000 and interest income of $4,000 from bonds she owns. Steve's only sources of income in 2019 were $50,000 from the business and $500 of interest on his checking account. The relevant Federal interest rate was 3%. The full amount of the loan was outstanding at the end of the year. Describe the effect of the loan on the 2019 taxable income of both the borrower and lender. Effect on Marge's 2019 taxable income:. Effect on Steve's 2019 taxable income:.. b. How would your answer to part a change if the amount of the loan is $150,000 instead of $75,000? Effect on Marge's 2019 taxable income: Effect on Steve's 2019 taxable income: w