A shareholder can lend funds to a corporation either by charging interest of $$7,500$ or on an interest$-$free basis. What is the

ultimate difference in total taxes payable between the two choices, assuming a $25\%$ tax rate for the corporation and a $45\%$ tax

rate for the individual $($dividend income taxed at $35\%)?$

Multiple Choice

$$1,125$

$$469$

$$375$

$$

$$1,500$