A is corrent. The requirement is to determine the amount of income tax expense that should be reported. The year-to-date income is multiplied by the effective annual income tax rate of the current year (25%) to calculate income tax expense on the interim income statement. Worth should report income tax expense of $25,000 ($100,000 × 25%).
B is incorrect. The year-to-date income is multiplied by the effective annual income tax rate of the current year (25%) to calculate income tax expense on the interim income statement. Worth should report income tax expense of $25,000 ($100,000 × 25%).
B is incorrect. The year-to-date income is multiplied by the effective annual income tax rate of the current year (25%) to calculate income tax expense on the interim income statement. Worth should report income tax expense of $25,000 ($100,000 × 25%).
D is incorrect. The year-to-date income is multiplied by the effective annual income tax rate of the current year (25%) to calculate income tax expense on the interim income statement. Worth should report income tax expense of $25,000 ($100,000 × 25%).
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