question

Use the imputed interest on below market loan rules to determine whether the lender must report interest on the following loans. Please circle the correct answer. (a) Corporation makes a $15,000 interest-free loan to shareholder for one year. Shareholder has $25,000 net investment income. The federal rate is 6%. (b) Mother makes a $200,000 interest-free loan to son for one year. Son has $250 net investment income. The federal rate is 6%. (c) Father makes a $75,000 interest-free loan to son for one year. Son has $1,300 net investment income. The federal rate is 6%. Use the imputed interest on below market loan rules to determine whether the lender must report interest on the following loans. Please circle the correct answer. (a) Corporation makes a $15,000 interest-free loan to shareholder for one year. Shareholder has $25,000 net investment income. The federal rate is 6%. (b) Mother makes a $200,000 interest-free loan to son for one year. Son has $250 net investment income. The federal rate is 6%. (c) Father makes a $75,000 interest-free loan to son for one year. Son has $1,300 net investment income. The federal rate is 6%