Under the Imputation Tax System,what Will Be the Grossed Up

question 42

Multiple Choice

Under the imputation tax system,what will be the grossed up value of a $1 cash dividend that was paid fully franked.The company tax rate is 30%.

• A)$1.24
• B)$1.43
• C)$1.30
• D)$1.00

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Definitions:

Abatement

The reduction, decrease, or relief from severity, intensity, or intensity of something, often used in the context of tax, rent, or environmental hazards.

Ademption

The situation in wills and estates where a specific bequest cannot be distributed because the item no longer exists in the decedent's estate.

Legacies

Gifts or inheritances left to someone in a will.

Grantor Trust

A grantor trust is a legal entity in which the trust's creator maintains control over the assets and income, often leading to the income being taxed directly to the creator.