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 $ 240 of In 2021, Vito has of compensation income and interest expense compensation expense and interest income In 2022, Vito has $ of and Vito, Inc. has $ of b. The loans are considered corporation-shareholder loans. In 2021, Vito has $ 160 of compensation expense and interest income and Vito, Inc., has 160 of In 2022, Vito has 163 of , and Vito, Inc., has $ of