Which of the Following Items Indicate That a Company Does

question 22

Multiple Choice

Which of the following items indicate that a company does not need a valuation allowance?

• A) excess of appreciated asset value over tax basis sufficient to realize the deferred tax asset
• B) existing sales contracts that will produce sufficient income to realize the deferred tax asset
• C) a strong history of earnings without considering the deferred tax asset
• D) All of the above are correct.

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Definitions:

Grave's Disease

An autoimmune disorder that results in the overproduction of thyroid hormones, leading to symptoms such as weight loss, rapid heartbeat, and nervousness.

Clozapine

An antipsychotic medication used to treat schizophrenia when other treatments have failed, known for its potential to cause agranulocytosis.