During its 2021 fiscal period ended December 31, 2021, ABC Limited made non-interest bearing advance to its sole shareholder and president, Stacey. $350,000 was advanced to Stacey on March 1, 2021 to aid her in the purchase of a water-front condo. At the time of the advance, Stacey signed a note with the corporation agreeing to repay the principal in equal annual instalments of $35,000 a year for the next ten years. The first principal repayment was due and paid February 28, 2022. The company does not have a policy of making such loans to other employees and has never made a similar loan to an employee in the past.

Required:

Explain the tax consequences to Stacey on the above transactions.