Question

In Intraperiod tax allocation, each of the following income statement items is reported net of its respective income tax effects:

1. income (or loss) from continuing operations
2. discontinued operations

Answer 1

In Intraperiod tax allocation, income statement items such as income from continuing operations and discontinued operations are reported net of their respective income tax effects.

Step-by-step explanation:

In Intraperiod tax allocation, each item on the income statement, such as income (or loss) from continuing operations and discontinued operations, is reported net of its respective income tax effects. This means that the income or loss figure already takes into account the income tax that needs to be paid. By reporting the items net of tax effects, the income statement provides a clearer picture of the company's financial performance after accounting for taxes.