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An employee is given a $10,000 interest free loan from her employer on January 1 to buy a car to be used for business trips.

An employee is given a $10,000 interest free loan from her employer on January 1 to buy a car to be used for business trips. Due to a serious illness, she used the car for only nine months of the year. Assume that the prescribed rate is 2 percent for the entire year. How much is her taxable benefit from the loan for the year

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