The tax benefit associated with a year-to-date operating loss should be recognized if:
A)the loss may be carried back to offset two prior years of income.
B)it is more likely than not that the benefit will be realized during the year.
C)it is more likely than not that the benefit will be realized against future income.
D)all of the above.

Question

The tax benefit associated with a year-to-date operating loss should be recognized if:
A)​the loss may be carried back to offset two prior years of income.
B)​it is more likely than not that the benefit will be realized during the year.
C)​it is more likely than not that the benefit will be realized against future income.
D)​all of the above.

Quizplus · Accepted Answer

The tax benefit associated with a year-to-date operating loss should be recognized if any of the conditions mentioned are met. This includes the ability to carry back the loss to offset income in two prior years (A), the likelihood of realizing the benefit within the current year (B), or the likelihood of realizing the benefit against future income (C). These options reflect the criteria under accounting principles for recognizing deferred tax assets.

The Tax Benefit Associated with a Year-To-Date Operating Loss Should