Which of the following best describes how the tax benefit resulting from the extraordinary loss in an interim period is recognized?
A)The tax benefit is recognized in the period in which it occurs using the estimated effective rate.
B)The tax benefit is recognized in the period in which it occurs using the average tax rate for all income.
C)The tax benefit is allocated over the current and remaining periods using the estimated effective rate.
D)The tax benefit is recognized only if, more likely than not, the loss may be offset against income.

Question

Which of the following best describes how the tax benefit resulting from the extraordinary loss in an interim period is recognized?
A)​The tax benefit is recognized in the period in which it occurs using the estimated effective rate.
B)​The tax benefit is recognized in the period in which it occurs using the average tax rate for all income.
C)​The tax benefit is allocated over the current and remaining periods using the estimated effective rate.
D)​The tax benefit is recognized only if, more likely than not, the loss may be offset against income.

Quizplus · Accepted Answer

The Answer of Which of the following best describes how the tax benefit resulting from the extraordinary loss in an interim period is recognized?
A)​The tax benefit is recognized in the period in which it occurs using the estimated effective rate.
B)​The tax benefit is recognized in the period in which it occurs using the average tax rate for all income.
C)​The tax benefit is allocated over the current and remaining periods using the estimated effective rate.
D)​The tax benefit is recognized only if, more likely than not, the loss may be offset against income.

Which of the Following Best Describes How the Tax Benefit