Winnie made a $70,000 interest-free loan to her son,Tod,who used the money to retire a mortgage on his personal residence.Tod's only source of income was salary of $35,000 and $990 interest income on a savings account.The relevant Federal interest rate was 5% and the loan was outstanding all year long.
What amount must Winnie include as interest income as a result of this transaction?

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The Answer of Winnie made a $70,000 interest-free loan to her son,Tod,who used the money to retire a mortgage on his personal residence.Tod's only source of income was salary of $35,000 and $990 interest income on a savings account.The relevant Federal interest rate was 5% and the loan was outstanding all year long.
What amount must Winnie include as interest income as a result of this transaction?

Winnie Made a $70,000 Interest-Free Loan to Her Son,Tod,who Used