Which of the following is true about intraperiod tax allocation?
A)It arises because certain revenue and expense items appear in the income statement either before or after they are included in the tax return.
B)It is required for extraordinary items and cumulative effect of accounting changes but not for discontinued operations.
C)Its purpose is to allocate income tax expense evenly over a number of accounting periods.
D)Its purpose is to relate the income tax expense to the items which affect the amount of tax.

Question

Quizplus · Accepted Answer

Intraperiod tax allocation is done to relate the income tax expense to the items which affect the amount of tax. It is not required for extraordinary items, cumulative effect of accounting changes, or discontinued operations. It arises because certain revenue and expense items appear in the income statement either before or after they are included in the tax return. Its purpose is not to allocate income tax expense evenly over a number of accounting periods.

Which of the Following Is True About Intraperiod Tax Allocation