Question

Taxable income of a corporation is based on generally accepted accounting principles. is reported on the corporation's income statement. differs from accounting income because companies use the full accrual method for financial reporting but use the modified cash basis for tax reporting. differs from accounting income due to differences in intraperiod allocation between the two methods of income determination.

Answer 1

differs from accounting income because companies use the full accrual method for financial reporting but use the modified cash basis for tax reporting.

Step-by-step explanation:

Corporation is simply a legal entity that existed through either federal or provincial legislation.It includes partnerships, joint stock companies, joint accounts, associations, insurance companies and others.

Taxable income is the amount on which the tax will be put together. They are imcome on which tax must be paid. Taxable income of Corporation includes taxed on earnings, dividends distributed to shareholders are also taxed to the shareholders and it creates double taxation.