The GAAP solution for avoiding distortions that would result from setting income tax expense equal to taxes owed is called

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Interperiod tax allocation is the GAAP solution for avoiding distortions in financial reporting by allocating income tax expense over different periods to match the income tax expense with the revenues that generate those taxes. This approach helps in presenting a more accurate picture of a company's financial performance over time.

The GAAP Solution for Avoiding Distortions That Would Result from Setting