Interperiod income tax allocation is based on the assumption that

A) permanent differences ultimately reverse and require interperiod tax allocation
B) permanent differences do not have deferred tax consequences
C) total income tax expense should be apportioned among numerous line items on the income statement
D) the amount of income tax expense reported on the income statement should be the same as the income tax obligation on the corporation's income tax return

Permanent Differences

These are differences between taxable income and accounting income that will not reverse in future periods.

Interperiod Income Tax Allocation

The process of allocating income taxes over various accounting periods because of temporary differences that cause taxable income to differ from accounting income.

Deferred Tax

An accounting concept referring to a temporary difference between the tax expense shown in the income statement and the tax payable to the tax authorities, due to timing or methodological differences in recognizing revenue and expenses.