(TCO 9) Before his nephew (Alan) leaves for college, Stuart loans him $400,000. Alan signs a note promising to repay the loan in 5 years. No interest element is provided. Which, if any, is not a tax consequence of this arrangement? (Points : 5)

Stuart has made a gift to Alan of the interest element.

Stuart has an interest expense deduction in regard to the interest element.

Alan may be allowed an income tax deduction in regard to the interest element.

Stuart has interest income in regard to the interest element.

None of the above