Acorn Ltd is a Canadian-controlled private corporation ("CCPC") with a December 31 year-end. The company is a Canadian distributor of large appliances operating from its head office in London, Ontario. Today is December 25, 2021 and Mr. Rogers, the sole shareholder and president of the company, has requested a meeting with you to discuss the below tax issue related to the company's December 31, 2021 taxation year-end. At the meeting he provided you with the following information: Mr. Rogers received a $90,000 3% loan, dated July 1, 2021 to enable him to purchase a new home for his pwn occupancy. Other senior employees of Acorn are eligible for, and have received, loans on similar terms. The loan was repayable over 10 years in equal instalments of principal payable on the anniversary date, but with interest payable monthly. Required: Provide Mr. Rogers with a detailed summary of the tax consequences to him and Acorn for the above for the year ending December 31, 2021, with calculations where necessary. Assume that the prescribed interest rate for the first quarter of 2021 was 4%, for the second quarter it was 3%, for the third quarter it was 4%, and for the fourth quarter it was 5%