Mansiben Patel 04/13/23 7:49 PM Ms. Madison Leal owns 60% of the outstanding shares of Leal's Luges Ltd., a CCPC with an August 31 taxation year end. The remaining shares of this company are owned by Ms. Lear's common-law partner, Jakob Buff Lear's Luges has been extremely successful and, as a result, has accumulated over $3,400,000 in cash that is not needed in the business. Because of this, the company has a very generous policy with respect to making loans to employees. View the loan policy. Required What are the income tax consequences of receiving each of these loans for the years 2022, 2023, and 20247 Briefly explain your conclusions. Calculate any interest benefit using months instead of days Loan policy Describe the inname fav end - X Loan policy Under this policy, any employee (including both shareholders who are also employees) is entitled to: A loan of up to $195,000 to acquire a principal residence at an interest rate of 2%. Loan to be repaid over a 5-year period in equal annual instalments plus interest. An interest-free loan of up to $26,000 to purchase an automobile if used to carry out employment duties. This loan is to be repaid over a maximum of 5 years. In 2022, Ms. Leal took advantage of the loan policy as follows: Principal Residence Loan On July 1, 2022, Ms. Leal borrowed $195,000 from the company. The loan will be repaid over a five-year period in equal instalments of $39,000 plus interest on January 1 of each year beginning January 1, 2023. Automobile Loan On September 1, 2022, Ms. Leal borrowed $26,000 interest-free to purchase an automobile she will use in carrying out her employment duties. She is not sure when she will be able to repay this loan. In addition to these loans that are available to all of the employees of Leal's Luges Ltd., Ms. Leal receives several other loans that will be used for various personal expenditures: February 1, 2022: Ms. Leal borrows $34,000 at 2% interest. This loan will be repaid on December 1, 2024. July 1, 2022: Ms. Leal borrows $26,000 on an interest-free basis. This loan will be repaid on August 30, 2023. December 10, 2022: Ms. Leal borrows $41,000 at 4% interest. It will be repaid on July 1, 2024. All repayments are made as scheduled. Assume the prescribed interest rate is 4% for all years. What are the income tax consequences of receiving each of these loans for the years 2022, 2023, and 20247 Briefly explain your conclusions. Calculate any interest benefit using months instead of days. Describe the income tax consequences of Madison Leal receiving the housing loan. Complete the sentences below. As such loans are available to all employees, Ms. Leal can claim that she has received the loan in loan to be included in her income as income from property for 2022. As the rate on the loan is income as income from employment capacity. This means that ITA 15(2) So require the $195,000 the prescribed interest rate, there will be an interest benefit that will be included in her Calculate the interest beneft for each year. (Round your answers to the nearest whole dollar. For entries with a 50 balance, make sure to enter "O" in the appropriate input field.) What is the amount of interest benefit for 20227 What is the amount of interest benefit for 2023? What is the amount of interest benefit for 20247 Describe the income tax consequences of Madison Leal receiving the automotive loan. Complete the sentences below. The motor vehicle exception repaid by because the repayment date is The establishes the deadline of Any amounts will not be required to be included in income but will be subject to an interest benefit through ITA 80.4(1) as employment income. Any amounts repaid after will be included in Madison's income as income from property under ITA 15(2) in Subsequent repayments related to amounts included in her income are for a deduction under ITA 20(1)g) in the year of repayment Describe the income tax consequences of Madison Leal receiving the loan taken out on February 1, 2022. Complete the sentences below. Describe the income tax consequences of Madison Leal receiving the loan taken out on February 1, 2022. Complete the sentences below The loan to be included in Ms. Lear's 2022 income as income from property because the loan is Ms. Leal to a deduction under ITA 20(1)). There be an interest beneft since the loan The repayment of $34.000 in included in her income. Describe the income tax consequences of Madison Leal receiving the loan taken out on July 1, 2022. Complete the sentences below. The loan to be included in Ms. Leal's 2022 income as income from property because the loan is Calculate the interest benefit for each year. (Round your answers to the nearest dollar. For entries with a $0 balance, make sure to anter "0" in the appropriate input field) What is the amount of interest benefit for 2022? What is the amount of interest benefit for 2023? What is the amount of interest benefit for 20247 Describe the income tax consequences of Madison Leal receiving the loan taken out on December 10, 2022. Complete the sentences below. The loan to be included in Ms. Lear's 2022 income as income from property because the loan is Calculate the interest benefit for each year. (For entries with a $0 balance, make sure to enter "0" in the appropriate input field.) What is the amount of interest benefit for 2022? What is the amount of interest benefit for 2023? What is the amount of interest benefit for 2024