The following is information related to the Statement of Income and Expenses of ABC, Inc. for the
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Question:
The following is information related to the Statement of Income and Expenses of ABC, Inc. for the period ended December 31, 2020.
The business reported pre-tax income of $ 131,374. The company posted a profit from discontinued operations before tax of $ 65,687.
The income according to books is equal to the taxable income because there are no differences, permanent or temporary.
The company's tax rate is 0.28.
Which of the following accounts presented in the Statement of Income and Expenses for 2020 is correct and shows the concept of "intraperiod tax allocation"?
a. Income from discontinued operations 47 295
b. Profit from discontinued operations 65,687
c. Tax expense 55177
d. Income before taxes 197061
Expert Answer:
An intraperiod tax allocation is the allocation of income taxes to different parts of the resul... View the full answer
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