On January 1, 2020, Mr. Packard receives a $135,000 loan from his employer to assist him in purchasing a home. The loan requires annual interest at a rate of 3.1 percent, which he pays on December 31, 2020. Assume that the relevant prescribed rate is 5 percent during the first quarter of 2020, 6 percent during the second quarter, and 4 percent during the remainder of the year. What is the amount of Mr. Packard's taxable benefit on this loan for the year?

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The Answer of On January 1, 2020, Mr. Packard receives a $135,000 loan from his employer to assist him in purchasing a home. The loan requires annual interest at a rate of 3.1 percent, which he pays on December 31, 2020. Assume that the relevant prescribed rate is 5 percent during the first quarter of 2020, 6 percent during the second quarter, and 4 percent during the remainder of the year. What is the amount of Mr. Packard's taxable benefit on this loan for the year?