The Incremental Income Tax Effect Utilized to Determine the Tax

Multiple Choice

The incremental income tax effect utilized to determine the tax effect of an extraordinary item is calculated by:

A) ​applying the estimated effective tax rate against the amount of the extraordinary item
B) ​the difference between the gross tax calculated on continuing operations and the gross tax on income from all sources
C) ​the difference between the estimated net tax calculated on the projected annual income from continuing operations and the estimated net tax calculated on projected annual income, including the non-ordinary items
D) ​none of the above.