Question 3 (3 points) Southland Corporation made a $100,000 interest free loan to Nicole, one of its employees in January of 2019. Nicole used the loan proceeds to pay off her credit card bills. If the applicable federal rate was 4%, which of the following is a true statement regarding the federal income tax consequences of this loan to Southland Corporation and Nicole in 2019? a) Nicole has no income, but $4,000 of deductible interest expense. Ob) Nicole has $4,000 of wages included in her gross income and $4,000 of deductible interest expense. c) Southland Corporation has $4,000 of interest income, but no deductible expenses. d) Southland Corporation has $4,000 of interest income and $4,000 of deductible wage expense. e) There are no tax consequences to either Southland Corporation or Nicole