In applying intraperiod income tax allocation to discontinued operations, other comprehensive income, retrospective adjustments, and prior period adjustments, what tax rate should be used?

Question

Quizplus · Accepted Answer

The marginal incremental income tax rate is the appropriate tax rate to use in applying intraperiod income tax allocation to discontinued operations, other comprehensive income, retrospective adjustments, and prior period adjustments. This is because the marginal incremental income tax rate reflects the change in income taxes that would result from an incremental change in income.

In Applying Intraperiod Income Tax Allocation to Discontinued Operations, Other