Intraperiod tax allocation would be appropriate for

Question

Quizplus · Accepted Answer

All of the options mentioned are situations where intraperiod tax allocation may be appropriate.

A) An extraordinary gain is a nonrecurring gain that may have a different tax treatment than the company's normal income. Thus, intraperiod tax allocation would be necessary to properly allocate the tax expense related to the gain.

B) A loss from operations of a discontinued segment may also require intraperiod tax allocation. The loss from the discontinued segment may have a different tax treatment than the remainder of the company's operations, and intraperiod tax allocation would be necessary to allocate the tax expense related to the loss.

C) Retrospective adjustments may also require intraperiod tax allocation if they impact prior periods' tax expenses.

Intraperiod Tax Allocation Would Be Appropriate for