Which of the following is an argument that an advocate of interperiod income tax allocation might use to support his/her position?
A) Income taxes result from taxable income.
B) Income taxes are an expense of doing business and should be treated the same as other expenses of doing business under accrual accounting.
C) Nonallocation of income taxes hides an economic difference between a company that employs tax strategies that reduce current tax payments than one that does not.
D) Income taxes are not incurred in anticipation of future benefits, nor are they expirations of cost to provide facilities to generate revenues.
Correct Answer:
Verified
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