Tonya Contributes $150,000 to Swan,Inc

Tonya contributes $150,000 to Swan,Inc.,for 75% of the stock.In addition,she loans Swan $450,000.The maturity date on the loan is 5 years and the interest rate is 8%,the same as the Federal rate.Which of the following statements are correct?

A) If the loan is reclassified as equity under § 385, Swan qualifies for a deduction of $450,000 when the loan is repaid, and Tonya receives dividend income of $450,000 (assuming that Swan's earnings and profits are at least $450,000) .
B) If the loan is not reclassified as equity under § 385, Swan can deduct interest expense annually of $36,000, and Tonya includes in gross income annually interest income of $36,000.
C) If the loan is reclassified as equity under § 385, Swan claims no interest deduction, and Tonya recognizes no income.
D) All of the above.
E) None of the above.