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Sam borrowed $50,000 from her employer at an annual rate of 1% interest last year for personal purposes. Assume that at the time the loan

Sam borrowed $50,000 from her employer at an annual rate of 1% interest last year for personal purposes. Assume that at the time the loan was made, the prescribed rate of interest was 3% and this rate has not changed. Sam is subject to a combined federal/provincial income tax rate of 30%. What is the taxable benefit to Sam that must be included in the income for the current year?

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