I just need help with the last part of (b). Thank you.

Parrott, Inc., a C corporation, is owned by Alfonso (60%) and Deanna (40%). Alfonso is the president, and Deanna is the vice president for sales. All three are cash basis taxpayers. Parrott encounters working capital difficulties, so Alfonso loans the corporation $810,000, and Deanna loans the corporation $540,000. Each loan is supported by a 5% note that is due in five years, with interest payable annually. Determine the tax consequences to Parrott, Alfonso, and Deanna if the notes are classified as (a) debt and (b) equity. a. If the notes are classified as debt, Parrott, Inc., will deduct interest expense of $ 67,500 . Alfonso will report interest income of $ 40,500 , and Deanna will report interest income of $ 27,000 each year. Feedback Check My Work Only the corporate form is potentially subject to double taxation. Several techniques are available for eliminating or at least reducing the second layer of taxation: (1) making distributions to the shareholders that are deductible to the corporation, (2) not making distributions to the shareholders and (3) making distributions that qualify for return of capital treatment at the shareholder level. 67,500 Alfonso will b. If the notes are classified as equity, Parrott, Inc., will report dividends deemed to be paid of $ report dividend income of $ 40,500. Deanna will report dividend income of $ 27,000 each year. When the loan is repaid in five years, assuming adequate earnings and profits, Alfonso will report dividend income of X and Deanna will report dividend income X. of $