Firms Recognize Deferred Tax Assets Only to the Extent That

Firms recognize deferred tax assets only to the extent that they expect to generate sufficient taxable income to realize the assets in the form of tax savings in the future.U.S.GAAP requires use of a deferred _____ to reduce the balance in the _____ account to the amount the firm expects to realize in tax savings in the future.

A) tax asset valuation allowance; Deferred Tax Asset
B) tax expense; Deferred Tax Asset
C) tax asset valuation allowance; Deferred Tax Liability
D) tax expense; Deferred Tax Liability
E) tax expense; Deferred Tax Revenue