What is t adams taxable benefit on the loan

Reference no: EM133608074

Problem

T. Adams commenced employment at Moana Sales Ltd. on February 1, 2022. He had lived in an apartment until May 2022, at which time he purchased a new house. Under the terms of his employment, he received a housing loan on May 1, 2022 of $80,000 at a rate of 2%. He pays the interest on the loan on a monthly basis. Assume the 2022 prescribed interest rates applicable to employee loans are as follows: First quarter 5% Second quarter 4% Third quarter 3% Fourth quarter 3% What is T. Adams' taxable benefit on the above loan for 2022 using number of days?

First quarter 5%
Second quarter 4%
Third quarter 3%
Fourth quarter 3%

What is T. Adams' taxable benefit on the above loan for 2022 using number of days?

Reference no: EM133608074

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