On 1’st April 2019, Arashdeep borrow money from his employer Arthur for the amount of $10,000 with the interest rate of 1%, no repayment of principal was required during the next 12 months. Calculate the taxable value of the loan fringe benefit! please put 3 references
On 1’st April 2019, Arashdeep borrow money from his employer Arthur for the amount of $10,000 with the interest rate of 1%, no repayment of principal was required during the next 12 months. Calculate the taxable value of the loan fringe benefit! please put 3 references
Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations
Section: Chapter Questions
Problem 34P
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Question
On 1’st April 2019, Arashdeep borrow money from his employer Arthur for the amount of
$10,000 with the interest rate of 1%, no repayment of principal was required during the next
12 months. Calculate the taxable value of the loan
please put 3 references
Expert Solution
Step 1 Introduction:
Loan fringe benefit arises when the employer provide a loan to the employee. The rate of interest of the loan is less than the rate prevailing in the market.
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