On September 1, 2021, Carol Mason received a loan from her employer of $150,000 to help finance a new house. The interest on the loan is 1%. All employees in the same position can receive similar loans. Assume the relevant prescribed rate was 2 % in Q3 and 3% in Q4. The amount of benefit to be included in Carol's tax return for 2021 is: a. $0 D. $500 c. $1,000 d. $250
On September 1, 2021, Carol Mason received a loan from her employer of $150,000 to help finance a new house. The interest on the loan is 1%. All employees in the same position can receive similar loans. Assume the relevant prescribed rate was 2 % in Q3 and 3% in Q4. The amount of benefit to be included in Carol's tax return for 2021 is: a. $0 D. $500 c. $1,000 d. $250
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 21CE
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![On September 1, 2021, Carol Mason received a loan
from her employer of $150,000 to help finance a new
house. The interest on the loan is 1%. All employees in
the same position can receive similar loans. Assume the
relevant prescribed rate was 2 % in Q3 and 3% in Q4.
The amount of benefit to be included in Carol's tax
return for 2021 is:
a. $0
b. $500
c. $1,000
d. $250](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F951f2231-86e9-407d-a37c-7af21b435d5e%2F0e51d5a7-bee1-4e47-8578-2d3020171dbd%2Feahi4t_processed.png&w=3840&q=75)
Transcribed Image Text:On September 1, 2021, Carol Mason received a loan
from her employer of $150,000 to help finance a new
house. The interest on the loan is 1%. All employees in
the same position can receive similar loans. Assume the
relevant prescribed rate was 2 % in Q3 and 3% in Q4.
The amount of benefit to be included in Carol's tax
return for 2021 is:
a. $0
b. $500
c. $1,000
d. $250
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