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Assignment:
In early 2022, Malia intends to borrow $20,000 from her employer to help her acquire shares in the employer's corporation. A low interest rate of 2% per annum will be payable on the loan.
Required:
(a) Determine Malia's employment income for tax purposes for 2021 . The CCA rate for automobiles is 30%, except in the first year when the accelerated rate is 45%.
(b) Briefly describe the tax implications from the intended employee loan to Malia. Assume the CRA's prescribed interest rate is in excess of 2%.
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