LO$.4$ Teresa is considering contributing $$900,000$ to the capital of Beige, Inc., a C corporation. A business acquaintance suggests that, instead, she should invest only $$600,000$ in capital and lend the $$300,000$ balance to the corporation. The interest rate on the loan would be the Federal rate that applies for the year. Are there any tax benefits to this approach? Any tax pitfalls? Explain.