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Rachel and Nathan file a Married Filing Joint return. They made an interest free loan to...

Rachel and Nathan file a Married Filing Joint return.
They made an interest free loan to their nephew, Jordan, for $40,000 that was outstanding for the entire 2019 year. Jordan had investment income of $3,000 during 2019. Assuming a federal short term rate of interest of 5%, how much imputed interest will be reported on the loan for 2019 for Jordan, Rachel and Nathan?

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