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# Prizes for whoever can answer this correctly!!!

Lolo Bean
New MemberRegistered Posts:

**13**
There seems to be alot of confusing with this question and everyone I have spoke to so far agrees with me......lets see if you think differently.

£400 dividends received.

What is the Gross amount of these dividends???

Now I know that dividends are received Net and therefore we need to Gross them up.

So I calculated 400/100*90 = £444.44 as the Gross amount. However this is incorrect.

What do you think?

£400 dividends received.

What is the Gross amount of these dividends???

Now I know that dividends are received Net and therefore we need to Gross them up.

So I calculated 400/100*90 = £444.44 as the Gross amount. However this is incorrect.

What do you think?

0

## Comments

2,4532,525Hello

Your calculation above equals £360 (400/100 = 4 * 90 = 360)

If you want to gross the dividend up, like you say above and in other posts, you need to take the amount received and multiply 100/90 - therefore £400 * 100/90 = £444.44 (mentioned above and in other posts)

If you take the £360 and gross that up you reach £400. £360 * 100/90 = £400

Could it be that the question was actually giving you the gross amount and asking what the tax credit was?

I think, but could be wrong as a few weeks ago now, that I had a question asking what the tax credit was. Perhaps this is AATs way of checking that we know it is 10%?

Happy to read what other people think.

Good luck with the exam

JC

13The question definitley asked what the gross amount was of £400 dividends received.

I just dont understand.

110591If the amount recieved was £400 that is 90% of the total. 400/90 *100 = £444 Gross (which is what the OP said

I agree with Jo Clark that there is probably something in the wording of the question that may put a different light on things. Can you type out the question in full please ?

Where is the question from and do you know the correct answer ? If you are doing a computer based test is it possible that your answer is not being accepted because of rounding ?

13£400 of dividends are received.

What is the gross amount of these dividends?

The available options from the dropdown menu were: 270, 350, 356.56, 360, 440, 444.44, 450 & 530

The question came up in my personal tax exam, however when I received my feedback sheet the question fell under the 'did not meet' section. The answer I gave was £444.44 (there was nothing mentioned in the question about rounding, it was asked as I have written it above).

I'm just not sure how you would go about calculating this question. Any advice would be appreciated.

3Workings - £400 x (100/90) = £444.44 - or - £400 / 90 x 100 = £444.44 (whichever works best for you)

(Note: If the figure is to be used in a tax computation, round the figure up/down to the nearest '£' )1,954Then you'd choose the option 444.44.

The question makes more sense when you see the possible answers, otherwise you'd question whether the 400 is gross and why the answer isn't a nice round one.

794Which Lolo Bean did and it was marked wrong, that's what's confusing everyone.

1,954Now I'm confused and wishing I'd read the whole thread

Maybe it was marked wrong... ** but its electronically marked, who knows..

2961- There must have been at least one another question on that subject that you did not get right?

2- The computer did indeed mark it incorrectly!

302Having had to go over some results I and other class members have received recently on exams where we should have got a higher mark - this scenario has been given by the senior course tutor repeatedly

1,954Very good point Louise!

296Why thank you PGM!