Deerwood Corporation lends its principal shareholder, Lafayette, $1,925,400 on July 1 of the current year. The loan is interest-free and payable on demand. On December 31, the imputed interest rules are applied. Assume that the Federal rate is 9%, compounded semiannually. What are the tax consequences of this loan? If required, round to the nearest dollar. Lafayette has ( of $ and Deerwood has of 1