Income Tax Allocation Procedures Are Not Appropriate When

question 5

Multiple Choice

Income tax allocation procedures are not appropriate when

• A)An extraordinary loss will cause the amount of income tax expense to be less than the tax on ordinary net income
• B)An extraordinary gain will cause the amount of income tax expense to be greater than the tax on ordinary net income
• C)Differences between net income for tax purposes and financial reporting occur because tax laws and financial accounting principles do not concur on the items to be recognized as revenue and expense
• D)Differences between net income for tax purposes and financial reporting occur that will not reverse.

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Definitions:

Incomplete Digestive Tract

A type of digestive system where a single opening serves as both mouth and anus, common in simpler organisms like cnidarians and flatworms.

Trachea

In insects, air tube located between the spiracles and the tracheoles. In tetrapod vertebrates, air tube (windpipe) that runs between the larynx and the bronchi.

Cephalothorax

A body region found in certain arthropods, including spiders and crustaceans, that combines the head and the thorax into one unit.

Fangs

Long, pointed teeth typically found in venomous snakes used to inject venom, or in some mammals for grasping and tearing.