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: 24


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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