Question: Multiple Select Question Select all that apply Which of the following statements are correct regarding the recognition of the cumulative difference in taxable income due

Multiple Select Question

Select all that apply

Which of the following statements are correct regarding the recognition of the cumulative difference in taxable income due to a change in accounting method?

If the adjustment increases taxable income, it is recognized over

4

years by adding

25 %

of the increase each year.

If the adjustment decreases taxable income, it is recognized over

4

years by subtracting

25 %

of the decrease each year.

If the adjustment increases taxable income, it is recognized in its entirety in the year of the change.

If the adjustment decreases taxable income, it is recognized in its entirety in the year of the change.

Multiple Select Question Select all that apply

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