FMGT 2325 – HOMEWORK #4
Question 1
On April 1, 20x1, Margaret Jones received a $250,000 loan from her employer, Goodie
Corporation. The actual rate of the loan was fixed at 3%, and the going market rate at the
time the loan was taken out was 6%.
Relevant Facts:
•
$200,000 of the loan was made to allow Margaret to purchase a new condominium
in downtown for her own inhabitation.
•
$50,000 of the loan was made to allow Margaret to purchase shares in a corporation
related to her employer.
•
On January 25th of each year, Margaret writes a cheque to Goodie Corporation in
payment of the interest incurred for the previous year.
•
Principal repayments of $10,000 annually will commence at the end of 20x5.
1st
•
Prescribed Rates:
2nd
3rd
4th
20x1 – 4%
5%
4%
5%
20x2 – 6%
7%
7%
8%
Required: Calculate Margaret’s employment benefit on the $250,000 loan, for 20x2.
Question 2
Find the page titled “British Columbia – 2018 General Income Tax and Benefit Package”
on Canada Revenue Agency’s website and print-out the following:
•
T1 General 2018 – Income Tax and Benefit Return – British Columbia; and
•
Schedule 1 – Federal Tax.
Question 3
AP 3-1 on page 128 of the textbook.