Chapter 13, Problem 13.6.1E

Mutinied−Choice Questions on Income Taxes at Interim Dates [AICPA Adapted]
Select the coned answer for each of the following questions.

1. According to ASC 270 and 740, income tax expense in an income statement for the first interim period of an enterprises fiscal year should be computed by applying the
a. Estimated income tax rate for the full fiscal year to the pretax accounting income for theinterim period.
b. Estimated income tax rate for the fullfiscal year to thetaxable income for the interim period.
c. Statutory income tax rate to the pretax accounting income for the interim period.
d. Statutory income tax rate to the taxable income for the interim period.