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Why Did the APB and the FASB Require an Investor

question 63

Essay

Why did the APB and the FASB require an investor to accrue a liability for future income taxes when using the equity method?


Definitions:

Nearest Tenth

Rounding to the closest tenth means adjusting a number to one decimal place.

Decimal

A number that includes a decimal point to represent a fraction of a whole.

Percentage

A way of expressing a number as a fraction of 100, denoted by the symbol %.

Lowest Terms

A fraction in which the numerator and denominator have no common factors other than 1, making it the simplest form of the fraction.

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