(show calculations) You are working at Grey Company. You purchased a house in 2020. Gray Company gave you a housing loan on May 1, 2020 for $80,000 at a rate of 2 percent interest. You pay the interest on the loan every month. The 2020 prescribed interest rates are as follows:

First quarter 5%

Second quarter 4%

Third quarter 3%

Fourth quarter 3%

What is your taxable benefit on the above loan for 2020?

A) Nil.

B) $267.40.

C) $670.68.

D) $1,073.97.

E) $2,147.95.

F) $667.40.

Part 1 (ITA 3) Division B Net Income to Division C Taxable income to Taxes Payable for Individuals + Bin #1 - Net Employment - losses carry forward 20 years and carry back 3 years (carrying baskets) ITA 3(a) + Bin # 2 - Net Business & Property - losses carry forward 20 years and carry back 3 years (carrying baskets) + Bin #4 - Other Income ITA 3 (b) + Bin #3 - Net Capital - losses carry forward for infinity and carry back 3 years (carrying basket) ITA 3 (C) - Bin #5 - Other Deductions = Sources of Income ITA 3 (d) Losses in current year from Bins 1, 2,4 = Division B Net Income ITA 110 Equivalent to Capital Gains Deduction for Employee Stock Options Payments included to calculation Division B but not included for Division C (e.g. social assistance) - Losses from other years (carrying baskets Bin #1 & 2) Losses from other years (carrying basket Bin #3 limited to Net Capital Income included in ITA 3 (b)) ITA 111 = Division C Taxable income X Applicable Tax Rates ITA 118 Tax Credits = Division E Taxes Payable for Individuals