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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
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) Mother makes a $90,000 interest-free loan to son for one year. Son has $5,000 net investment income. The federal rate is 6%. No Interest InterestLimitedtotheAmountofBorrowersNetInvestmentIncomeInterestatFederalRate (b) Father makes a $175,000 interest-free loan to son for one year. Son has zero net investment income. The federal rate is 6%. (c) Employer makes a $9,000 interest-free loan to employee for one year. Employee has $30,000 net investment income. The federal rate is 6%
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