Adam started a job at STD Sales. On Feb 1 2019. He had lived in an...
Adam started a job at STD Sales. On Feb 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 the employee loan are as follows
. Frist quarter: 5%
Second quarter: 4%
Third quarter: 3%
\Forth quarter: 3%
What is Adams taxable benefit on the above load for 2019?
A) Nil.
B) $267.40
C) $670.68
D) $1,073.97
Homework Answers
Adams taxable benefit on the loan for 2019 is $10073.97 as assuming the 2019 prescribed interest rates applicable to the employee loan
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