11. Which of the following best describes the accounting for costs benefitting more than one period?

a. Accounting standards requires companies to estimate the effective tax rate expected to be applicable for the full fiscal year and to use that rate in computing income taxes in an interim period.

b. Companies must estimate the effective tax rate for all interim reporting periods independently.

c. Companies are required to use the statutory tax rate for each interim reporting period and to adjust to the effective tax rate at the end of the year.

d. The tax rate used for interim reporting periods should not reflect tax benefits resulting from investment tax credits, foreign tax rates, and the like, unless those benefits are certain.

12. Kaycee Corporation's revenues for the year ended December 31, 2017, were as follows:

Consolidated Revenue per the Income Statement: $1,200,000

Division 1 Intersegment Sales: $180,000

Division 2 Intersegment Sales: $60,000

For purposes of the Revenue Test, what amount will be used as the benchmark for determining whether a segment is reportable?

A) $144,000.

B) $24,000.

C) $120,000.

D) $0.

E) $138,000.