All of the following are true regarding loss carry forwards except:
A) The probability of realization needs to be greater than 50%.
B) The carry forward benefit is recognized on the balance sheet.
C) Management may choose not to set up the benefit.
D) Any deferred income tax benefit set up should not be subsequently written down.

Question

Quizplus · Accepted Answer

Deferred income tax benefits can be written down if it becomes apparent that they will not be realized.

All of the Following Are True Regarding Loss Carry Forwards