In general, the purpose of ASC 740 is to compute and disclose the taxes payable by a business entity to state, local, Federal, and foreign governments for the current year and all future years.

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ASC 740 is an accounting standard that provides guidance on how to account for income taxes. The purpose of ASC 740 is to ensure that businesses accurately report their tax liabilities and to provide users of financial statements with information about the taxes that a business is required to pay.

In General, the Purpose of ASC 740 Is to Compute