Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 4 - Income Statement and Related Information - Review and Practice - Questions - Page 180: 21


Intraperiod tax allocation doesn't affect the reporting of unusual gain.

Work Step by Step

For easier differentiation of material items from extraordinary items that are either infrequent or unusual, the Financial Accounting Standards Board (FASB) particularly prohibits “net of tax” treatment of such items. The “net of tax” is reserved for extraordinary items, prior period changes, and discounted operations.
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