Ridge is a generous individual. During the year, he made interest-free loans to various family members when the Federal rate was 3%. What are the tax consequences of the following loans by Ridge:

a. On June 30, 2016, Ridge loaned $12,000 to his cousin, Jim, to buy a used truck. Jim’s only source of income was his wages on various construction jobs during the year.

b. On August 1, 2016, Ridge loaned $8,000 to his niece, Sonja. The loan was to enable her to pay her college tuition. Sonja had $1,200 interest income from CDs her parents had given her.

c. On September 1, 2016, Ridge loaned $25,000 to his brother, Al, to start a business.

Al had $220 of dividends and interest for the year.

d. On September 30, 2016, Ridge loaned $150,000 to his mother so that she could enter a nursing home. His mother’s only income was $9,000 of Social Security benefits and $500 of interest income.