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QUESTION 1 Maria loaned both of her children $10,000 interest free on January 1, 2019. Bobby used his loan proceeds to make a down payment

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QUESTION 1 Maria loaned both of her children $10,000 interest free on January 1, 2019. Bobby used his loan proceeds to make a down payment on his personal residence. His net investment income was 51,025 for 2019. Shelia used her loan proceeds to purchase Amazon stock. Her net investment income was $1,010 for 2019. Assuming Maria was not attempting to shift income to the children, and the applicable Federal rate is 10% how much interest income must she include on her 2019 return? The loans were outstanding for the entire year with interest compounded semiannually. $2,050 O $1,000 $1,025 51,010

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