What is Adams taxable benefit on the above load

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Question - Adam started a job at STD Sales. On Feb 1 2019. He had lived in an apartment until May 2019, at which time he purchased a new house. Under the terms of his employment, he received a housing loan on May 1 2019 of $80,000 at a rate of 2 percent. He pays the interest on the loan on a monthly basis. Assume the 2019 prescribed interest rates applicable to the employee loan are as follows.

Frist quarter: 5%

Second quarter: 4%

Third quarter: 3%

Forth quarter: 3%

What is Adams taxable benefit on the above load for 2019?

A) Nil.

B) $267.40.

C) $670.68.

D) $1,073.97.

Reference no: EM132479761

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