When enacted tax rates change,the asset and liability method of interperiod tax allocation recognizes the rate change as

Question

Quizplus · Accepted Answer

The asset and liability method of interperiod tax allocation recognizes the rate change as a separate charge or benefit to income tax expense. This means that the impact of the rate change is reflected in the current year's income tax expense separately from other adjustments. This method ensures that the effects of a change in tax rates are properly accounted for and recognized in the appropriate period.

When Enacted Tax Rates Change,the Asset and Liability Method of Interperiod