Under the Imputed Interest Rules, Gift Loans Between a Daughter

question 142

Multiple Choice

Under the imputed interest rules, gift loans between a daughter (lender) and her mother (borrower) may result in
I.No imputed interest income recognized by the mother.
II.No imputed interest deduction by the daughter.
III.Imputed interest income recognized by the daughter.
IV.Deduction allowed for imputed interest expense by the mother.
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• A)Only statements I, II, and III are correct.
• B)Only statements I and IV are correct.
• C)Only statements I and II are correct.
• D)Only statement III is correct.
• E)Only statements III and IV are correct.

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Definitions:

LAN

Local Area Network, a network that connects computers within a limited area like a home, school, or office building.

MAN

Metropolitan Area Network, a network that interconnects users with computer resources in a geographic area larger than that covered by a LAN but smaller than a WAN.

WAN

Stands for Wide Area Network, a telecommunications network that extends over a large geographic area for the primary purpose of computer networking.

LAN

Local Area Network; a computer network that interconnects computers within a limited area such as a residence, school, or office building.