Homework Answers
Answer:
Before tax dividend income = $2500 ..................a
Exculsion = $2500 x .70 = $1750
Taxable Dividend = $2500 - $1750 = $750
Tax on Dividend Income = $750 x 0.40 = $300...b
After tax dividend income ( a - b)
= $2500 - $300
= $2200
So, Answer is a.
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