Question

What does Initial Tax Benefit refer to?

a.

Tax relief associated with periodic returns

b.

Tax relief enjoyed at the time of making investment

c.

Relief from taxation upon investment realization

d.

Tax exemption on dividend income

Posted under IC 89 Management Accounting

Answer: (b).Tax relief enjoyed at the time of making investment Explanation:Initial tax benefit refers to tax relief enjoyed by the investor at the time of making the investment.

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