Question

Companies use intraperiod tax allocation on the income statement for

A) income from continuing operations and discontinued operations.

B) neither income from continuing operations nor discontinued operations.

C) only discontinued operations.

D) only income from continuing operations.

Answer 1

Companies use intraperiod tax allocation on the income statement for income from continuing operations and discontinued operations.

Step-by-step explanation:

Companies use intraperiod tax allocation on the income statement for income from continuing operations and discontinued operations. This means that taxes are allocated to both the ongoing operations of the company as well as any operations that have been discontinued. This is done to accurately reflect the financial impact of taxes on the different components of the income statement.