What is T Adams taxable benefit on the loan

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Reference no: EM132600264

Question - T. Adams commenced employment at Moana Sales Ltd. on February 1, 2019. He had lived in an apartment until May 2019, at which time he purchased a new house. Under the terms of his employment, he received a housing loan on May 1, 2019 of $80,000 at a rate of 2 percent. He pays the interest on the loan on a monthly basis. Assume the 2019 prescribed interest rates applicable to employee loans are as follows:

First quarter 5%

Second quarter 4%

Third quarter 3%

Fourth quarter 3%

Required - What is T. Adams' taxable benefit on the above loan for 2019?

Reference no: EM132600264

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