On July 1, Frank Loans His Brother Matt $200,000

On July 1, Frank loans his brother Matt $200,000. The loan is evidenced by an interest- free demand note. The loan is still outstanding on December 31. The applicable interest rate is 12%. Frank is treated as having made a gift of

A) $200,000.
B) $12,000.
C) $0.
D) $24,000.