Your client, Jean Beliveau, received a Notice of Reassessment in respect of his 2018 taxation year dated August 1, 2020. His 2018 tax return was originally assessed by a Notice of Assessment dated August 13, 2019. The reassessment was in respect of a 2018 transaction that was reported as a capital gain but is being reassessed by the CRA as business income. As a result, the additional tax owing in respect of that 2018 transaction is assessed at $25,000. You have reviewed your documentation of your analysis of the transaction and you realize that the facts support a strong argument by the CRA for business income. You have discussed this with Jean and you have agreed not to pursue an appeal of the reassessment. Jean has agreed to pay the tax owing and the appropriate interest today, October 24, 2020.

Required: Compute the amount of total tax and interest that Jean must pay on October 24, 2020. Ignore the fact that instalments may have been deficient. Assume, as necessary, that the basic prescribed rates for employee and shareholder loans, throughout each of the indicated calendar years are: 2018 5%; 2019 2%; and 2020 3%. Ignore the effects of any leap year.