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For interim financial reporting, the computation of a company’s second quarter provision for income taxes uses an effective tax rate expected to be applicable for the full fiscal year. This effective tax rate should reflect anticipated_____________.

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Answer:

This is well stated in the International Accounting standard IAS 12 taxes, which says that the effective tax rate must include all the tax credits from the governments, Foreign and national tax rates, percentage depletion, capital gains taxes and other tax incentives and payments.

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