K is employed by X Ltd., a Canadian private corporation, and also owns 6% of...
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Accounting
K is employed by X Ltd a Canadian private corporation, and also owns of Xs common shares. In K borrowed $ from X and used the loan to acquire a home. The loan agreement states that K must pay annual interest equal to the bank prime rate in effect in and regular principal instalments over five years. Other employees have received similar loans in past years. K makes all payments on time and the loan is repaid after years. K has no taxable income resulting from the loan. Is this statement true or false?
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