Which of the following was a controversial issue faced by the Accounting Principles Board (APB)?
A)The investment tax credit
B)Income tax allocation
C)Business combinations and goodwill
D)All of the above

Question

Quizplus · Accepted Answer

All of these issues were controversial and debated by the Accounting Principles Board.

The investment tax credit was a controversial issue as it related to the treatment of tax benefits associated with investments in plant and equipment.

Income tax allocation was also controversial as it dealt with how to allocate income taxes between various financial statements such as the income statement, balance sheet, and statement of cash flows.

Business combinations and goodwill were another issue that caused controversy as it related to how to account for the acquisition of one company by another and how to value goodwill.

Which of the Following Was a Controversial Issue Faced by the Accounting