The General Rate Income Pool account accumulates the after-tax earnings that can be paid as
A)non-eligible dividends.
B)eligible dividends.
C)capital dividends.
D)exempt dividends.

Question

Quizplus · Accepted Answer

The General Rate Income Pool (GRIP) account accumulates after-tax earnings that can be paid out as eligible dividends, which are taxed at a lower rate for shareholders.

The General Rate Income Pool Account Accumulates the After-Tax Earnings