Understanding The Issues

1. What are the benefits of viewing an interim period as an integral part of a larger annual period rather than as a separate distinct period?

2. What factors are necessary for determining the estimated annual effective income tax rate?

3. Why must the tax expense or benefit traceable to nonordinary items of income be computed on an incremental basis, and why does it involve a process of ratable allocation?

4. Why isn't the total operating profit of all reportable segments normally equal to the consolidated operating profit?

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