Jones works for the Bank of Montreal. The bank provides loans to its employees at an annual interest rate of 3%.On April 1 of the current year the bank provides Jeff with an employee loan in the amount of $36,000 at the annual interest rate of 3%. The loan requires annual principal repayments of $3,000 on April 1 of each year. Jeff makes the first annual repayment in the following year. Assume that Canada Revenue Agency's prescribed interest rates for the current year are as follows:

•Q1 (Jan. 1 to Mar. 31) =7%

•Q2 (Apr. 1 to June 30) =8%

•Q3 (July 1 to Sept. 30) =7%

•Q4 (Oct. 1 to Dec. 31) =8%

Calculate the taxable benefit to be included in employment income for JeffJones in the current year. Round your answer to the nearest dollar.

Answer rating: 100% (QA)

To calculate the taxable benefit we need to determine the diff... View the full answer