Reference no: EM132315438

Question

Q) A result of intraperiod tax allocation is that: A) Large fluctuations in a company's tax liability are eliminated. B) Current year income tax expense is allocated among the income statement items that caused the expense. C) Higher taxes occur in the future. D) Income tax expense in the income statement equals taxes actually paid.

Q) If a company's deferred tax asset is not reduced by a valuation allowance, the company believes it is more likely than not that: A) Sufficient financial income will be generated in future years to realize the full tax benefit. B) Tax rates will change in the future. C) Sufficient taxable income will be generated in future years to realize the full tax benefit. D) Tax rates will not change in future years.