For questions $1-3,$ consider the following scenario. Round calculations to the nearest dollar and show your work.

Carla employs Darren as a designer in her software engineering firm. Darren has been a very loyal employee for $12$ years and wants to buy a home. Carla highly values Darren$$s work as a designer and wants to keep him happy as an employee, so she offers to lend Darren $$340,000$ at $1\%$ interest to purchase a home. The loan is made on January $1,2023,$ and Darren is required to repay the loan in $10$ years. The mortgage is officially recorded, and the interest will qualify for the mortgage interest itemized deduction. The applicable federal rate for similar term loans is $4\%.$

$1.$ How much imputed interest will there be in $2023?$

$2.$ What are the tax consequences $($specific types and amounts of income and deduction$)$ of the loan to Carla in $2023?$

$3.$ What are the tax consequences $($specific types and amounts of income and deduction$)$ of the loan to Darren in $2023?$