Please help me to solve this problem thank you

Sam has borrowed $10,000 from his corporation on July 1, 2019. The corporation has a year end of July 31. It is not December 31, 2020 and Sam has yet to repay the loan. The prescribed rate is 1% and the loan is non interest bearing. What are the tax consequences to Sam? $10,000 income inclusion in 2019 There is no income impact $10,000 income inclusion in 2020 Sam must include a deemed interest benefit of 1% into his income from the date the loan was issued