Under an Imputation Tax System,what Will Be the Dividend After

question 35

Multiple Choice

Under an imputation tax system,what will be the dividend after tax on $100 of income generated by a company when 100 per cent of the after- tax income is paid out to the shareholder as a fully franked dividend and the shareholders personal average tax rate is 30 per cent? The company tax rate is 30 per cent.

• A)$70
• B)$30
• C)$100
• D)$60

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Definitions:

Rational Logical

Pertaining to the ability or process of reasoning in a clear, consistent, and deductive manner to solve problems or make decisions.

Cognitive-Behavioral

A therapeutic approach that focuses on changing negative thought patterns and behaviors to improve mental health.

Insight

The sudden perception of relationships among various parts of a problem, allowing the solution to the problem to come quickly.

Humanistic

A psychological perspective that emphasizes the holistic view of the individual, focusing on free will, self-efficacy, and the inherent goodness and potential for growth in all people.