{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

mc_q_02_03 - Ignore the effects of leap years(a $Nil(b...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
MULTIPLE CHOICE QUESTIONS Q02. T. Adams commenced employment at Moana Sales Ltd. on February 1, 2010. T. Adams had lived in an apartment and he moved into his house on May 1, 2010. Under the terms of his employment, he received a housing loan on March 12, 2010 of $80,000 at a rate of 3%. T. Adams pays the interest on the loan on a monthly basis. Assume the 2010 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 2010?
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Ignore the effects of leap years. (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....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online