A forms a C corporation by transferring $10,000 in exchange for stock. A also loans thecorporation $1,000,000 at 10% per year, with principal repayable at $100,000 per year10 years. The corporation then makes the annual principal and interest payment for aperiod of 3 years to A. At the end of the 3rd year the Internal Revenue Service audits thecorporate and A's individual tax returns for the 3 years and is successful in arguing thatallof the debt (e.g. $1,000,000) was really equity. What are the tax implications to bothA and the corporation ?