Vito is the sole shareholder of Vito, Inc. He is also employed by the corporation. On June 30, 2021, Vito borrowed $8,000 from Vito, Inc., and on July 1, 2022, he borrowed an additional $10,000. Both loans were due on demand. No interest was charged on the loans, and the Federal rate was 4% for all relevant dates. Vito used the money to purchase a boat, and he had $2,500 of investment income. Determine the tax consequences to Vito and Vito, Inc., in each of the following situations. If an amount is zero, enter "0". If required, round your intermediate computations to the nearest dollar and use these values in subsequent computations. Round your final answers to nearest dollar. a. The loans are considered employer-employee loans. and Vito, Inc. has $ 360 of In 2021, Vito has $ 360 of compensation income and interest expense compensation expense and interest income and Vito, Inc. has $ 360 of In 2022, Vito has $ 360 of compensation income and interest expense dividend income and interest income b. The loans are considered corporation-shareholder loans. , and Vito, Inc., has $ 160 of In 2021, Vito has $ 160 of dividends paid and interest income dividends paid and interest income In 2022, Vito has $ 163 of dividends paid and interest income and Vito, Inc., has $ 163 of