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answer is the first choice (1250) but I dont understand how this was solved On July 1, 2023, Samantha borrowed $50,000 from her employer at
answer is the first choice (1250) but I dont understand how this was solved 
On July 1, 2023, Samantha borrowed $50,000 from her employer at an annual interest rate of 1 percent. She will pay the annual interest every June 30th, starting in 2024 along with $10,000 of the principal. Assume that at the time the loan was made, CRA's prescribed rate of interest was 5 percent for 2023. What amount should Samantha report as a taxable benefit in 2023? Multiple Choice $1,250 $2,500 $1,000 $2,000
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
