Describe the Use of the Valuation Allowance for Deferred Tax

question 8

Essay

Describe the use of the valuation allowance for deferred tax assets.

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Definitions:

Ash Blanketing

The covering of large areas with volcanic ash following an explosive volcanic eruption.

Pumice

Volcanic rock, especially of felsic or intermediate composition, containing many vesicles (holes) formed by expanding gases in magma.

Lava

Molten rock that has been expelled from a volcano during an eruption and solidifies as it cools on the Earth's surface.

Ash

Fine particles of rock, minerals, and volcanic glass created during volcanic eruptions and carried through the air.