Firms Can Minimize Income Taxes by Generating Level Taxable Income

Firms can minimize income taxes by generating level taxable income from year to year because:

A) large swings in taxable income attract the attention of taxing officials and can trigger tax audits.
B) level taxable income from year to year makes computing income tax liability easier each year.
C) tax rates and tax laws change often and consistent levels taxable income usually mean that the effect of those changes on tax liability will be minimized.
D) income tax schemes are usually progressive and tax shields are only useful when a firm has taxable income.