For each of the following independent cases, Point out the income and gift (if any) tax consequences for both the Borrower and the Lender:
(a) James loaned his 25 year old son, Keith, $ 8,000 interest free, which Keith used to invest in a certificate of deposit yielding $ 8000 of interest income. Keith%u2019s total investment income for the year was $ 1,200.
(b) P Corporation loaned its sole shareholder, Quentin, $ 150,000 interest free.