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Hilary was given a $50,000 fixed-rate loan by her new
employer to cover the cost of purchasing a new home near her
new office. The loan carried an interest rate of 2%. She
accepted the loan on January 1 of last year and made her first
payment on January 2 of this year. For the first two quarters of
last year the prescribed interest rate was 2%. For the second
two quarters of last year the prescribed interest rate was 3%.
Calculate Hilary’s tax consequences for this loan for last year.
Question 30 options:
a)
Tax credit of $247.95
b)
Tax credit of $250.00
c)
Taxable benefit of $252.05
d)
Taxable benefit of $500.00
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Recommended textbooks for you
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
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