An Item Regularly Priced at $89

question 165

Multiple Choice

An item regularly priced at $89.00 is marked down to the cost price for a clearance sale. If the item cost the retailer $40.05, what is the rate of markdown?

• A) 45%
• B) 49%
• C) 55%
• D) 22%
• E) 122%

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Definitions:

Intragroup Dividends

Dividends paid between companies within the same group, which may have implications for the group's consolidated financial statements.

Tax Effect

The impact of tax on business decisions and financial transactions, influencing net income and cash flows.

Franked

In the context of Australian taxation, it refers to dividends that come with a credit for taxes the corporation has already paid.

Dividend Imputation

A tax system where companies’ paid taxes can be attributed to shareholders, reducing their personal income tax on dividends.