Which of the Following Items Is Not Considered Evidence in Determining

question 40

Multiple Choice

Which of the following items is not considered evidence in determining if a valuation allowance is necessary?

• A)A cumulative book loss over some period of time.
• B)Management projects future taxable income based on a backlog of signed contracts.
• C)A net operating loss expired unused in the current year.
• D)Management can implement a tax strategy to create future taxable income, but it will be detrimental to the future profitability of the company.

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Definitions:

Persistent Inflammation

Ongoing or chronic inflammation in the body that can lead to various diseases, including arthritis, heart disease, and diabetes due to continuous activation of the immune system.

Clogged Arteries

A condition caused by the buildup of plaque inside the blood vessels, leading to reduced blood flow and increased risk of cardiovascular diseases.

Asthma

A chronic respiratory condition characterized by episodes of airway constriction, leading to wheezing, coughing, and shortness of breath.

Expressing Anger

This term covers the various ways individuals may display or communicate feelings of anger, from verbal expressions to physical reactions.