The accounting profession has wrestled for many years with the issue of interperiod allocation of income tax.Since 1967,the authoritative position of the profession has been that interperiod tax allocation is appropriate.Some in the profession have not agreed with the authoritative position.Some respondents to the Discussion Memorandum for SFAS No.109 advocated that income tax expense for financial reporting should be the amount of taxes payable for the year as determined by the tax return.
Required:
Assume that you advocate the use of the amount of taxes payable for the year as determined on the tax return as the income tax expense for financial reporting purposes.Provide arguments to support your position.

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The Answer of The accounting profession has wrestled for many years with the issue of interperiod allocation of income tax.Since 1967,the authoritative position of the profession has been that interperiod tax allocation is appropriate.Some in the profession have not agreed with the authoritative position.Some respondents to the Discussion Memorandum for SFAS No.109 advocated that income tax expense for financial reporting should be the amount of taxes payable for the year as determined by the tax return.
Required:
Assume that you advocate the use of the amount of taxes payable for the year as determined on the tax return as the income tax expense for financial reporting purposes.Provide arguments to support your position.

The Accounting Profession Has Wrestled for Many Years with the Issue