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 from the pretax receipt. Therefore, option B is the correct formula as it calculates the after-tax benefit by multiplying the pretax receipt by (1 - tax rate), meaning that the after-tax benefit is equal to the pretax receipt minus the tax paid on it.

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