Susan, a non-employee majority shareholder in a company, makes an interest-free loan to the corporation in the amount of $100,000, which of the following statements is correct?

	a.	Susan must recognize imputed interest expense and the corporation must recognize imputed interest income.
	b.	Susan must recognize imputed interest income and the corporation must recognize imputed interest expense.
	c.	Susan must recognize imputed dividend income and the corporation may recognize imputed interest expense.
	d.	Neither Susans nor the corporations gross income is affected by the loans because no interest was charged.