Which one of the following would require interperiod tax allocation?

Question

Quizplus · Accepted Answer

Interperiod tax allocation is necessary when there are differences between the timing of income recognition for accounting purposes and for tax purposes. Choice D, investment income recognized by the equity method for accounting purposes but as income when received for tax purposes, represents such a timing difference, requiring interperiod tax allocation to reconcile the differences over time.

Which One of the Following Would Require Interperiod Tax Allocation