Ms$.$ Bea Essee is the vice$-$president of SR&ED with Dundas Manufacturing Ltd$.$ She is one of a group of eight senior executives who have been granted options to purchase from the corporation unissued non$-$voting Class B common shares of the corporation. She presently owns $15\%$ of these shares. In order to assist this group of employees to acquire shares under the stock option plan, the corporation provides loans at low interest rates under an established policy approved by the Board of Directors.

On April $1,2023,$ Ms$.$ Essee borrowed $$50,000$ to enable her to exercise some of her stock options. She signed a note promising to repay $$10,000$ of principal on the anniversary date of the loan in each of the next five years and to pay interest at a rate of $1\%$ per year paid quarterly. Assume that the prescribed rates in $2022$ were: first quarter, $3\%$; second quarter, $3\%$; third quarter, $2\%$; fourth quarter, $3\%.$

Required:

Advise Ms$.$ Bea Essee of the $2023$ Division B income tax effects to her of receiving the loan amount of $$50,000$ and of paying interest of $1\%$ to the corporation.

Support your advice with complete calculations where necessary.