Income stripping refers to the process of:
A)creating strip bonds for raising new debt financing
B)repackaging securities to provide different types of income based on different parts of the return
C)dividing net income into residual earnings and dividend payments
D)setting aside excess income for share repurchases

Question

Quizplus · Accepted Answer

Income stripping involves repackaging securities to provide different types of income based on different parts of the return. This is often done to reduce tax liability by separating income streams and taking advantage of differing tax treatment.

Income Stripping Refers to the Process Of