Kenmare Architects Ltd. (KAL) was incorporated and commenced operations on January 1, 2017. Sheila Kenmare, the company's only employee, consults with various clients and uses expensive equipment to complete her work. When the company was formed, Sheila bought 10,000 common shares but at the beginning of 2018, another 1,000 common shares were sold to Sheila's mother. In addition to selling shares, KAL received financing from Sheila's Uncle Harry in the form of a loan that was taken out on January 1, 2017. Her uncle required the company to pay only the interest on the loan and no principal in 2017, which KAL did. However, he wanted both interest and a portion of the principal to be paid during 2018. These