On July 1, 2019, Virgil van Delden receives a $100,000 investment loan from his employer. The loan requires that interest be paid at a rate of 1 percent. Assume that prescribed rates for the last two quarters of 2019 are as follows:

3rd Quarter 3%

4th Quarter 2%

What is the taxable benefit that will be assessed to him as a result of having this loan?

$1,250

$1,500

$2,250

$750

QUE:2)

Amir Patel is a commission salesperson with a base salary of $96,000. During 2019, he

earns commissions of $16,000, with $7,000 of this not being paid until January, 2020.

During 2019, he incurs the following expenses:

Meals and Entertainment With Clients $23,000

Hotel And Airline Tickets $12,000

What is the amount of Amirs maximum deduction for these costs in determining his 2019

employment income?

$35,000

$23,500

$16,000

$12,000

$9,000

QUE 3)

Lily Zhao is a commission salesperson who is required to have an office in her personal

residence. Which of the following home office related costs cannot be included in the

amount that she deducts for this office?

Interest on the mortgage.

Maintenance costs.

Property taxes.

Fire insurance.