If a Taxation Authority Amends a Company's Assessment, the Company

Multiple Choice

If a taxation authority amends a company's assessment, the company should:

A) Debit income tax expense if more tax needs to be paid;
B) Credit income tax expense if less tax needs to be paid;
C) Analyse the reason for the adjustment and consider whether both current and deferred tax are affected;
D) Treat the adjustment as a prior period adjustment.