Indicate whether the following statements are factors to be considered in resolving the thin capitalization issue. Select "Yes, a factor" or $"$No$,$ not a factor", whichever is applicable.

a$.$ Whether funds loaned to the corporation are used to finance initial operations or capital asset acquisitions.

b$.$ Whether the corporation has a high ratio of current assets to current liabilities.

c$.$ Whether holdings of debt and stock are proportionate $($e$.$g$.,$ each shareholder owns the same percentage of debt as stock$).$

d$.$ Whether payment is contingent upon earnings.

e$.$ Whether the debt instrument bears a reasonable rate of interest and has a definite maturity date.

No$,$ not a factor

Yes, a factor

Yes, a factor

Yes, a factor