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A corporation loans an employee $5,000 to buy the corporation's stock from treasury. At that time, the prescribed rate is 1% and the current rate

A corporation loans an employee $5,000 to buy the corporation's stock from treasury. At that time, the prescribed rate is 1% and the current rate charged by banks for similar loans is 3%. The corporation provides the loan to the employee on an interest free basis. What would be the amount of the taxable benefit to the employee?

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