mc_q_02_03

mc_q_02_03 - (a) $Nil (b) $647 (c) $3,233 (d) $3,455 Q03....

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MULTIPLE CHOICE QUESTIONS Q02. T. Adams commenced employment at Moana Sales Ltd. on February 1, 2008. T. Adams had lived in an apartment and he moved into his house on May 1, 2008. Under the terms of his employment, he received a housing loan on March 12, 2008 of $80,000 at a rate of 3%. T. Adams pays the interest on the loan on a monthly basis. Assume the 2008 prescribed interest rates for employee loans are as follows: First quarter 4% Second quarter 4% Third quarter 4% Fourth quarter 5% What is T. Adams taxable benefit on the above loan for 2008?
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Unformatted text preview: (a) $Nil (b) $647 (c) $3,233 (d) $3,455 Q03. Which of the following is NOT a taxable benefit? (a) A Christmas gift to an employee from the employer. (All the employees received the same gift, cash of $150). (b) Premium paid by an employer for group term life insurance coverage for employees. (c) A 20% discount on the employer's merchandise, available to all employees. The employer's mark-up is 50%. (d) Low rent housing provided by the employer....
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