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15. The effects of a below-market loan for $1,000,000 made by a corporation to its chief executive officer as an enticement to get him to

15. The effects of a below-market loan for $1,000,000 made by a corporation to its chief executive officer as an enticement to get him to remain with the company are:

a. The corporation has imputed interest income and the officer is deemed to have received a gift.

b. The corporation has imputed interest income and the officer has imputed dividends received income.

c. The officer has no income unless the funds are invested and produce investment income for the year.

d. The officer has imputed compensation income and the corporation has imputed interest income, and is not allowed a deduction for the imputed compensation expense.

e. The officer has imputed compensation income and the corporation has imputed interest income, but is allowed a deduction for the imputed compensation expense.

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