E Paragraph 15 Normal No Spac Heading 1 Heading 2 Styles 24. Compensation-Related Loans (OBJ. 3) On January 1, a company loans its employee, Liz Kittner, $50,000. The terms of the note require that Liz pay interest annually based on a 1.5% annual rate of interest. In addition, Liz is to repay the $50,000 at the end of three years. At the time the loan was made, the current annual AFR short-term, mid-term and long-term rates were 2%, 3% and 4% respectively. Determine the tax consequences of the loan both to the company and to Liz in the first year. a) b) c) | Title D Replace Select- Dic Z Editing Vo