Accounting versus Tax Treatment (Appendix-related) Pineco plans to embark on a business acqui sition program to diversify
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Accounting versus Tax Treatment (Appendix-related) Pineco plans to embark on a business acqui¬
sition program to diversify its product lines. The controller is unclear about whether the tax treat¬
ment determines the accounting treatment or whether the accounting treatment determines the tax treatment.
Required How would you advise the controller?
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