A Valuation Allowance Is Recorded Against a Deferred Tax Asset

question 97

Multiple Choice

A valuation allowance is recorded against a deferred tax asset when:

• A) It is more likely than not that the deferred tax asset will not be realized in the future.
• B) It is highly likely the deferred tax asset will not be realized in the future.
• C) It is remote the deferred tax asset will not be realized in the future.
• D) It is probable that the deferred tax asset will not be realized in the future.

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