Which type of dividend carries a credit for income tax paid by the company?

Name: Which type of dividend carries a credit for income tax paid by the company?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Franked dividend is a type of dividend where the company has already paid income tax on the profits it has generated before distributing dividends to shareholders. This means that the dividends carry a credit for the income tax paid by the company, which can be used to offset the individual's own tax liability. Therefore, D is the correct choice.

Which Type of Dividend Carries a Credit for Income Tax