Intraperiod Income Tax Allocation: Explanation and Importance

Intraperiod Income Tax Allocation

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Question

Intraperiod income tax allocation arises because

Answers

A. certain revenues and expenses appear in the financial statements but are excluded from taxable income.

B. items included in the determination of taxable income may be presented in different sections of the financial statements.

C. income taxes must be allocated between current and future periods.

D. certain revenues and expenses appear in the financial statements either before or after they are included in taxable income.

E. none of these answers.

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Explanations

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A. B. C. D. E.

To provide a fair presentation of the results of operations, accounting rules require that income tax expense for the period be allocated among income from continuing operations, discontinued operations, extraordinary items, and items charged or credited to shareholders' equity.

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