Assignment 2 - Personal - Microsoft Edge 0 X https://mylab.pearson.com/Student/PlayerTest.aspx?testld: Acct 3095 (3) = Quiz: Assignment 2 Question 24 of 25 This quiz: 42 point(s) possible This question: 5 point(s) possible Submit quiz Ms. Miya Lueders owns 60% of the outstanding shares of Lueders's Luges Lid., a CCPC with an August 31 taxation year end. The remaining shares of this company are owned by Ms. Lueders's common-law partner, Jayce Batista. Lueders's Luges has been extremely successful and, as a result, has accumulated over $3,000,000 in cash that is not needed in the business. Because of this, the company has a very generous policy with respect to making loans to employees. View the loan policy. Required What are the income tax consequences of receiving each of these loans for the years 2022, 2023, and 2024? Briefly explain your conclusions. Calculate any interest benefit using months instead of days. Loan policy Under this policy, any employee (including both shareholders who are also employees) is entitled to: . A loan of up to $195,000 to acquire a principal residence at an interest Describe the income tax consequences of Miya Lueders receiving the housing loan. Complete the sentences below. rate of 1%. Loan to be repaid over a 5-year period in equal annual instalments plus interest. As such loans are available to all employees, Ms. Lueders can claim that she has received the loan in an employee capacity. This means that ITA 1 . An interest-free loan of up to $26,000 to purchase an automobile if used to carry out employment duties. This loan is to be repaid over a maximum of 5 from property for 2022. As the rate on the loan is less than the prescribed interest rate, there will be an interest benefit that will be included in her i years. Calculate the interest benefit for each year. (Round your answers to the nearest whole dollar. For entries with a $0 balance, make sure to enter "0" in the In 2022, Ms. Lueders took advantage of the loan policy as follows: Principal Residence Loan On July 1, 2022, Ms. Lueders borrowed What is the amount of interest benefit for 2022? $195,000 from the company. The loan will be repaid over a five-year period What is the amount of interest benefit for 2023? in equal instalments of $39,000 plus interest on January 1 of each year beginning January 1, 2023 What is the amount of interest benefit for 2024? . Automobile Loan On September 1, 2022, Ms. Lueders borrowed $26,000 interest-free to purchase an automobile she will use in carrying out Describe the income tax consequences of Miya Lueders receiving the automotive loan. Complete the sentences below. her employment duties. She is not sure when she will be able to repay this loan The motor vehicle exception applies because the repayment date is |more than two years. |The one-year limitation establishes the de In addition to these loans that are available to all of the employees of Lueders's required to be included in income but will be subject to an interest benefit through ITA 80.4(1) as employment income. Any amounts repaid after Luges Lid., Ms. Lueders receives several other loans that will be used for V Suhcement renavments related to amounts included in her income are VI for a derduction under ITA 20/1 Vi) in the wear of renavmen various personal expenditures: February 1, 2022: Ms. Lueders borrows $38,000 at 1% interest. This loan will be repaid on December 1, 2024. . July 1, 2022: Ms. Lueders borrows $26,000 on an interest-free basis. This loan will be repaid on August 30, 2023. Q Search 20m 0 ENG 8:47 PM US 6/29/2023 8