On April 1, 2023, Vini Velasquez receives a five-year, 2% interest-bearing loan of $98,000 from his...

 

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On April 1, 2023, Vini Velasquez receives a five-year, 2% interest-bearing loan of $98,000 from his employer that he uses to purchase investments. Five annual payments of $19,600 plus interest are required to be made beginning December 31, 2023. Assume that Vini could not have borrowed at that interest rate and that the prescribed interest rates for 2023 are as follows: View the prescribed interest rates. What is the amount of the taxable employment benefit that will be required to be included in his 2023 employment income as a result of this loan? Base any calculations on a quarterly basis rather than the number of days. Assume that any interest payable on the loan is paid by each required annual repayment date. On April 1, 2023, Vini Velasquez receives a five-year, 2% interest-bearing loan of $98,000 from his employer that he uses to purchase investments. Five annual payments of $19,600 plus interest are required to be made beginning December 31, 2023. Assume that Vini could not have borrowed at that interest rate and that the prescribed interest rates for 2023 are as follows: View the prescribed interest rates. What is the amount of the taxable employment benefit that will be required to be included in his 2023 employment income as a result of this loan? Base any calculations on a quarterly basis rather than the number of days. Assume that any interest payable on the loan is paid by each required annual repayment date.