Each of the following three situations is independent. 1. Len is an employee and the sole shareholder of Laser Ltd. On July 1, 20X6, Len entered into a loan agreement with Laser Ltd., wherein Laser Ltd. agreed to loan $30,000 at 3% interest to Len to enable him to purchase a car to be used in carrying out his duties of employment. The loan is to be repaid in full at the end of three years. The interest is to be paid annually. Although Laser Ltd. has 65 employees, Laser Ltd. has never made a car loan to any other employee. Laser Ltd. has a June 30 year end. 2. Karen is a shareholder and key employee of X Ltd., a CCPC with a November 30, fiscal year end. Karen's daughter, aged 19 and a full-time student at the University of Toronto, received an interest-free loan of $10,000 from X Ltd. on December 31, 20X6, to pay her tuition. The loan is repayable in full in 20X9, one year after she graduates. 3. Wayne Fry is a 60% shareholder and president of Attack Ltd., a Canadian-controlled private corporation with a November 30 year end. On March 1, 20X6, Wayne received a $300,000 loan from Attack Ltd. to assist him with the purchase of a new home, located 10 km from his previous home. The loan is repayable over five years in equal instalments of principal payable on the anniversary date. The loan has an interest rate of 1% per annum. The interest is payable monthly. Required: What are the tax implications for the individuals receiving the loans?