T. Adams commenced employment at 4FRNT Sales Ltd. on February 1, 2019.He had lived in an apartment until May 2013, at which time he purchased a new house. Under the terms of his employment, he received a housing loan on May 1, 2019 of $80,000 at a rate of 2%.He pays the interest on the loan on a monthly basis.Assume the 2019 prescribed interest rates applicable to employee loans are as follows:

First quarter2%

Second quarter2%

Third quarter1%

Fourth quarter1%

What is T. Adams' taxable benefit on the above loan for 2019?

This is what I got using the notes but I'm confused at why I would use this formula :

([80000][(61/365](0.02-0.02)+(184/365)(0.03-0.02)] = $403.29

• more specifically why 61/365 and 184/365..... I know 61/365 for may but why 184/365?