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Suppose an individual subject to a 30 per cent marginal rate of income tax has 2,500 shares in a company that is paying a partially

Suppose an individual subject to a 30 per cent marginal rate of income tax has 2,500 shares in a company that is paying a partially franked dividend of 40 cents per share, with a franking ratio of 0.70 (i.e. 70%). The individual is a resident for taxation purposes. If the company tax rate is 30 per cent, the tax credit can the individual claim due to the partially franked dividends is:

a.

$1000

b.

$390

c.

$210

d.

$300

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