The recommendation for interim income tax expense requires the use of which of the following rates in the first quarter?
A)Estimated average
B)Marginal
C)Applicable progressive
D)Loss carryforward

Question

Quizplus · Accepted Answer

Interim income tax expense is the tax expense calculated for a portion of the fiscal year, such as the first quarter. Since the actual tax rate for the full year may not be known at the time of interim reporting, the estimated average tax rate is used to calculate the interim income tax expense. Therefore, Choice A is the best answer as it uses the estimated average tax rate.

The Recommendation for Interim Income Tax Expense Requires the Use