Why do we minus the tax by 1 before multiplying it by EBT? Like if...
70.2K
Verified Solution
Link Copied!
Question
Finance
Why do we minus the tax by 1 before multiplying it by EBT? Like if we multiplied EBT by TAX percentage and then got our tax amount and then minus it from EBT wouldnt that give us NI ?
Necessary explaining please
Net income = (1 TC)EBT
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
