On April 1, 2023, Vern Velasquez receives a five-year, 1% interest-bearing loan of $90,000 from his employer that he uses to purchase investments. Five annual payments of $18,000 plus interest are required to be made beginning December 31, 2023. Assume that Vern could not have borrowed at that interest rate and that the prescribed interest rates for 2023 are as follows:

First and Second Quarters 4% Third Quarter 3%

Fourth Quarter 2%

What is the amount of the taxable employment benefit that will be required to be included in his 2023 employment income as a result of this loan? Base any calculations on a quarterly basis rather than the number of days. Assume that any interest payable on the loan is paid by each required annual repayment date.