The after-tax benefit of a taxable cash receipt can be calculated as follows:

Name: The after-tax benefit of a taxable cash receipt can be calculated as follows:
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Question

Quizplus · Accepted Answer

The after-tax benefit of a taxable cash receipt can be calculated by subtracting the tax rate from 1 (to get the percentage of the receipt that is kept after taxes), then multiplying that percentage by the pretax receipt amount. Therefore, the formula for after-tax benefit is (pretax receipt x (1 - tax rate)), which matches option B.

The After-Tax Benefit of a Taxable Cash Receipt Can Be