Required Information [The following information applies to the questions displayed below.] Wally is employed as an executive with Pay More Incorporated. To entice Wally to work for Pay More, the corporation loaned him $40,000 at the beginning of the year at a simple interest rate of 1 percent. Wally would have paid Interest of $4,800 this year if the Interest rate on the loan had been set at the prevailing federal interest rate, a. Wally used the funds as a down payment on a speedboat and repaid the $40,000 loan (including $400 of interest) at year-end. Does this loan result in any income to either party? Yes O No Indicate the amount below. Gross Income $ 4.400 Pay More Wally