Book income tax expense when using interperiod tax allocation results in a proper matching of revenues and expenses in the income statement.

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Quizplus · Accepted Answer

Interperiod tax allocation helps to ensure that income tax expense is recognized in the same period as the related revenues and expenses. This is considered a more accurate matching of revenues and expenses, and therefore results in a more accurate representation of the company's financial performance. As a result, book income tax expense should be recognized using interperiod tax allocation.

Book Income Tax Expense When Using Interperiod Tax Allocation Results