Which of the following characteristics belong(s) to the Exempt Model?
A) Only after-tax dollars are invested.
B) Only tax-free dollars are invested.
C) Earnings on the investment are exempt from explicit taxation.
D) both A and C
D) both A and C
As is the case with the Current and Deferred Models, only after-tax dollars are invested in the exempt model. In addition, the earnings on the investment are exempt from explicit taxation.
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