In the previous year, an employee received a $30,000 loan to acquire a house at a 2% interest rate. Canada Revenue Agency's (CRA's) prescribed interest rate at the time the loan was made was 3 %. In the current year CRA's prescribed rate was 4%. The employee's tax rate is 40 % . What would be the taxable benefit and the tax paid by the employee in the current year on the loan? Multiple Choice $900 and $600 $600 and $240 $300 and $120 $900 and $360

In the previous year, an employee received a $30,000 loan to acquire a house at a 2% interest rate. Canada Revenue Agency's (CRA's) prescribed interest rate at the time the loan was made was 3 %. In the current year CRA's prescribed rate was 4%. The employee's tax rate is 40 % . What would be the taxable benefit and the tax paid by the employee in the current year on the loan? Multiple Choice $900 and $600 $600 and $240 $300 and $120 $900 and $360

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter4: Gross Income

Section: Chapter Questions

Problem 6CE

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