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Chuck Bouchard was hired by Granite Inc. on March 15, 2018. He had lived with his parents until April 2018, at which time he purchased
Chuck Bouchard was hired by Granite Inc. on March 15, 2018. He had lived with his parents until April 2018, at which time he purchased a new house. Under the terms of his employment contract, he received a housing loan on April 1, 2018, of $105,000 at a rate of 2%. He pays interest on the loan on a monthly basis. Assume the 2018 prescribed interest rates applicable to employee loans are as follows: First quarter 6% Second quarter 5% Third quarter 5% Fourth quarter 3% What is Chuck's taxable benefit on the above loan for 2018? a) Nil Ob) $1575.00 Oc) $1843.98 d) $2362.50 e) $3937.50
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