Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 4 - Income Statement and Related Information - Questions - Page 188: 22

Answer

Intraperiod tax allocation bares no effect on net income. However, it might affect other components of income.

Work Step by Step

The effects on other components of income offset each other, therefore leaving the net income free of any intraperiod tax allocation influence. It barely takes the entire tax expense and allocates it to numerous items, which influence the tax amount.
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