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A, B, C, form X Corporation to develop real estate. A contributes land with an...

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Accounting

A, B, C, form X Corporation to develop real estate. A contributes land with an FMV of $1 million and an adjusted basis of $900,000. A received 500 shares of stock of X ($1,000 each) and a 10-year, $500,000 promissory note of X Corporation bearing a market rate of interest. B & C each contribute land with an FMV of $500,000 and adjusted basis of $50,000. They each receive 250 shares of X stock and a 10-year note of X for $250,000 having a market rate of interest. In addition, X Corp borrows $5 million from a 3rd party lender.
Are the various promissory notes of X Corp to A, B, and C debt or equity?
Would your answer change if the principal and interest of the notes to A, B, and C were subordinated to the debt owned by the outside lender?
Would you answer chance if the principal and interest of the note to A, B, and C were to be paid only out of profits of X Corp?
Why A, B, and C and X care whether the notes are debt of equity?

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