Intraperiod tax allocation
A) arises because certain revenue and expense items appear in the income statement either before or after they are included in the tax return.
B) is required for the cumulative effect of changes in accounting principles but not for discontinued operations.
C) allocates income tax expense evenly over a number of accounting periods.
D) relates income tax expense to the items that affect the amount of tax.

Question

Quizplus · Accepted Answer

Intraperiod tax allocation relates income tax expense to the items that affect the amount of tax. It is required for items that appear in the income statement before or after they are included in the tax return, including discontinued operations and cumulative effect of changes in accounting principles. It allocates income tax expense in a manner that reflects the relationship between the tax effect of certain revenue and expense items and the related financial statement items for the period.

Intraperiod Tax Allocation