All of the Following Are Evidence to Support Recognition of a Deferred

question 81

Multiple Choice

All of the following are evidence to support recognition of a deferred income tax benefit except:

• A)An excess of fair value over the tax basis of the enterprise's net assets in an amount sufficient to realize the deferred income tax asset.
• B)There are existing taxable temporary differences to absorb the loss.
• C)It is acceptable industry practice to recognize the deferred income tax benefit.
• D)A strong earnings history suggesting that losses are not expected to continue.

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Definitions:

Pertinent Information

Relevant or applicable data or facts that are directly related to a specific topic or situation.

Diverse Interests

A wide range of hobbies, preferences, and pursuits that vary greatly among individuals or groups.

Multiple Channels

The use of various platforms or mediums for communication or distribution, such as in marketing or broadcasting.

Sketching

The act of drawing quickly and roughly to capture the basic shape and features of an object or scene, often used as a preliminary step in the design process.