Assertion (A): Tax benefits are available on dividend paid on preference shares. Reason (R): Dividend paid on preference shares is an appropriation of profits.

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KollegeApply · Accepted Answer

Assertion (A) is False but Reason (R) is True. Explanation: • Assertion (A): False – No tax benefits are available on dividends paid on preference shares because dividends are not treated as an expense for tax purposes. • Reason (R): True – Dividend on preference shares is indeed an appropriation of profits, not a tax-deductible expense.

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