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Question 11 8 pts On January 1, 2020, Javon loaned his son Walker $90,000, interest-free. Walker uses the money to invest in corporate bonds paying

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Question 11 8 pts On January 1, 2020, Javon loaned his son Walker $90,000, interest-free. Walker uses the money to invest in corporate bonds paying 8% annual interest. Assume that the applicable federal rate of interest is 5%. You may also assume that Walker's net investment income is $6,000. a. What (if any) amount of interest income does Javon recognize from this transaction? Now assume that, instead of borrowing money from his father, Walker borrows $9,000 from his employer, interest-free, in order to purchase a corporate bond paying 8% interest (assume the purpose of the loan is NOT tax avoidance). The federal rate is still 5%, and Walker's net investment income is still $6,000. b. What (if any) amount of compensation expense does Walker's employer recognize from this transaction

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